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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 as a Stock Market Tool Report 0 comments
    Nov 11, 2009 12:36 AM
    The Markets lost $34 billion in market cap yesterday. The Market Distribution Chart for the SPX (66%) fell to Mostly OverBought (OB), the NYSE (53.21%) remains Little OB and the NASDAQ (34.83%) 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 Wednesday: none for the Veterans Day holiday. The signals for markets on Wednesday are Neutral to Positive.                                                                                                                                    
    Comments: The market distributions for price (%OB Price) were little changed yesterday. Yesterday, I highlighted the NASDAQ lagging so far behind the SPX and NYSE in Price Distribution. The SPX skew remains significantly to the right of the NYSE and NASDAQ stocks. Sometimes this is a red flag. Wednesday is a holiday with the markets open and the markets may remain little changed again. The key point is something will happen to bring these distributions closer to each other over the next few days. That could be bad earnings to make the SPX/NYSE Underperform or possibly good earnings to make the NASDAQ Outperform.                                   
                                                                                                              
    Comments: You will notice in the Most actives list below, that some sectors have large Market CAP % gains for the past 5 days, but are listed in the Laggards list. This is mainly because of lower %OB numbers (%OB Price and ∆%OB5D) or lower volume. With little change yesterday, I am sticking with Media and Transports as Focus sectors. Transports were down on very low volume.. Drugs are a candidate to make the Leader List and adding them to the Focus.   Also, I would highlight Insurance, Building, Real Estate and Protection were volume leaders with Selling yesterday. Steel and Wall Street were also weak on lower volume.    
                                                                                                                                     
    Focus List: Drugs, Media and Transports     

    www.stockmarketdistribution.com to see the complete report. 
    Themes: Drugs
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  • Gaming at Extremely OS conditions. One of the largest sector gainers yesterday, likely to continue. BYD, BYI, SGMS, IGT, MGM and MPEL.
    Oct 30, 2009
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    Oct 29, 2009
  • Precious Metals getting a nice bounce today....HL, IAG, TCK
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