Definition of a Distribution Day in the Stock Market

I have been asked by many of my students the definition of a Distribution day in the Stock market. A Distribution day is a decline of at least 0.2% in higher volume. This signifies that the Institutional Big investors are “distributing” shares or in other words liquidating their positions. When we have more than 4 […]

With High Distribution Day Counts Might Be Prudent Not to Be in the Stock Market

Currently we have 7 Distribution days on both the SPY and the QQQ. This shows strong institutional selling. It is like fighting an upstream battle in the stock market. One can look at the shares in which they bought and see how they are working. I try to pick the strongest stocks both fundamentally and […]

The Battle for the 50 Day Moving Averages on the Stock Market

There is a battle in the stock market over the 50 day moving average. Stock Market Bulls and Bears are battling to see which direction the stock market will trend. Please consider we have currently 7 Distribution days on both SPY and QQQ. This shows a great deal of institutional selling.

Why Did the Stock Market Sell off So Hard? $QQQ

Does the stock market really need a reason. Just look at Sonic. They reported good earnings and the stock tanked. One key has been the preponderance of Distribution days. They have been in the 6 range in both the SPY and QQQ. Caution should be exercised at this juncture and trades should have exact pre […]

What do your Trading Rules Say How to Handle this Situation? #QQQ #SPY

I sent this email out to all of my students in which I mentor…I thought to share on my blog…Would like to hear feedback from my readers…

What do your rules say for this…

5 Distribution Days on both QQQ and SPY….

Yet a signal to purchase based on moving averages…& increase from the last […]

Stocks are at New Highs However Leaders are not Leading $XENE $NEWR $HDP

In a healthy stock market situation you would like to see stocks hitting new highs with leading stocks powering the way. However this is not the situation. More so we have 7 distribution days weighing heavy on the stock market. The leading stocks are not providing any substantial returns. This can be inferred either as […]

Current Stock Market is a Very Difficult One to Be in $SPY $QQQ

There are always the buy and hold (pray) investors who seem to obvious to the internal breadth of the stock market. This current period even though we seem to be knocking new highs with ease, I personally feel the current stock market is a very difficult one to be in.

My rational is based […]

Reducing Stock Market Exposure $SPY $QQQ $TNA

Clearly the market uptrend is currently under pressure, with five distribution days on the S&P500 and four on the Nasdaq. I have reduced stock market exposure prior due to the double back to back distribution days. You never know how bad a stock market sell off can be… However yesterday we did see some strength […]

Stock Market Positive Sentiment Increasing- Negatively so are Distribution Days

A distribution day is marked by a loss of 0.2% or greater in the Nasdaq composite or S&P 500 in higher volume than the previous session. This indicates heavy selling activity by mutual funds and institutions. Currently we have 5 distribution days on the $SPY and 4 distribution days on the $QQQ. Unless this gets repaired by strong positive volume with […]

Trend Following Setups with 7 Distribution Days $SPY $QQQ

I have many many trend following retracment setups after the market slide last week. However what is bothersome is that we are below the 50 day Exponential moving averages with 7 distribution days. Want to see if there will somewhat of a rebound before looking to participate. There has been HEAVY institution selling…However one must […]