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Author Daily Newsletter "Distribution as a Stock Market Tool" (DAASMT) www.stockmarketdistribution.com Charles A. Gawlak has over 12 years of investment research experience and 12 years of small business management. Charles is the author of “Distribution as a Stock Market Tool™,”... More
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Distribution as a Stock Market Tool
  • Daily Distribution Report 0 comments
    Nov 10, 2009 02:28 AM | about stocks: MBI
     
    The Markets gained $589 billion in market cap yesterday. The Market Distribution Chart for the SPX (69.6%) rose to Very OverBought (OB), the NYSE (55.8%) rose to Little OB and the NASDAQ (38.9%) remains Mostly OverSold (OS). The SPX distribution chart remains "to the right" of the NYSE, a Positive signal (see page 4). The SPX option premiums are signaling Neutral to Negative. Economic News out Tuesday: ICSC Goldman Store Sales and Redbook. The signals for markets on Tuesday are Neutral to Positive.   
                                                      
    Comments: It is interesting to see the NASDAQ lagging so far behind the SPX and NYSE in distribution. The SPX, which contains both NYSE and NASDAQ stocks, has rocketed ahead to Very OverBought with almost 70% of its stocks above their 25MAs, while the NASDAQ has only 39%. This is on the verge of a "bad" sign. There have been times, under these circumstances, where the NYSE and SPX have fallen back to closer to the NASDAQ in an "equilibrium" of sorts. The three distributions are not always in-line with each other, but wide "spreads" such as the current view, tend to work back closer to In-line, whether the markets go higher or more likely with a pullback.   This should work out over the next few days.
    The NASDAQ chart does not look much different than the others, with extra stocks just to the left of their means. This may be explained by large numbers of stocks in the Tech sectors just below their 25MAs. Looking at the 25 day CAP % change, we see the Tech sectors, Internet, Computers and Software near the top of the list, while, Semiconductors and Biomedics are near the bottom.
    Comments: Insurance had a huge day, up over 8%. Insurance is a "newcomer" to the most Active list below (See newsletter on website). However, after the close, MBIA (MBI, NYSE) "blew up" and was trading down 12% in after hours. The other Financial sectors were lagging in volume yesterday.   Curious to see how this plays out on Tuesday.

    Focus List: Media and Transports (From the Most Actives list page 1)

    Check stockmarketdistribution.com


    Themes: Media, Transports Stocks: MBI
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    Oct 30, 2009
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  • Precious Metals getting a nice bounce today....HL, IAG, TCK
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