Docs

What Flow is

Big sector moves are easy to see and usually late. Inside a sector the picture changes much faster: investors sell one chip maker to buy another, or leave big pharma for biotech, long before the whole sector turns.

FLOW looks for exactly that. It knows which stocks in a sector normally move together, and it flags the moment two of them start to split. The stock that falls behind is where money left. The one that pulls ahead is where it landed.

Reading the terminal

Open the terminal and pick a sector. You will see three things.

The summary

One sentence on the whole sector, and a bar that leans toward the basket money is moving into. A bar near the middle means a normal week.

The map

Each box is a stock, with its change over the last 5 trading days. The two columns are the two baskets of the sector. A grey line joins two stocks that usually move together. A black line means they split this week, and its arrow points to the one that gained.

The explanation

Click a black line or a stock and the panel on the right explains it in words, with a chart of the last month. The shaded part of the chart is this week.

Strong and early

A strong signal is a split between two stocks that are normally close, and the gap is rare for them. An early signal is a smaller or looser split worth keeping an eye on.

The method

No machine learning and no black box. Five steps you could repeat in a spreadsheet.

1. 1
   Daily closes

   Six months of daily closing prices for every stock in the sector.

2. 2
   Daily returns

   Each day becomes a return: the log of today's close divided by yesterday's close.

3. 3
   How close two stocks are

   For every pair we take the correlation of their daily returns over the 60 trading days before this week. 1 means they always move together, 0 means no relation. Pairs at 0.4 or higher count as close.

4. 4
   How unusual this week is

   We add up each stock's returns for the last 5 trading days and take the difference between the two. Then we compare it with every other 5 day gap this pair had in those 60 days. The result is a z score: how many typical gaps wide this week is.

5. 5
   The label

   Strong signal: a close pair with a z score of 1.5 or more. Early signal: a z score of 1 or more on a pair with correlation of at least 0.3. The same test on equal weight baskets drives the summary bar.

When the explanation says a gap happens about once every N weeks, that comes straight from the z score, assuming gaps are roughly normally distributed. Real markets have fatter tails, so read it as a rough guide, not a precise probability.

Sectors and baskets

Every sector is split into two baskets that sit on opposite sides of the same trade. Baskets are equal weight.

Data and limits

Prices are daily closes of the underlying US listings, pulled from a public market data feed after every US market close. The terminal always shows the date of the last close it is using.

FLOW only sees prices. It does not know about earnings, news or index rebalances, and a split can have a boring reason. A signal tells you where to look, never what to do.

The $FLOW token

$FLOW is a memecoin launched on pons.family under the same idea: money never leaves, it changes seats. It does not unlock anything. The terminal and these docs stay free and open for everyone. There is no staking, no yield and no revenue share. The contract address is posted on launch day.

Disclaimer

Nothing on this site is investment advice or an offer to buy or sell any security or token. Tokenized stocks and memecoins can lose all of their value. Do your own research.