Distribution as a Stock Market Tool
A SIMPLE WAY TO FOLLOW THE SMART MONEY
START YOUR TRADING DAY HERE
WITH MOST ACTIVE SUB-SECTOR LISTS
AS STOCK SCREENS
Distribution as a Stock Market Tool™ introduces
"Percentage OverBought (%OB)"
for the number of stocks in a sector above their 25-day moving averages. The %OB for Price and Volume highlights the sub-sectors with the most stocks move above or below their 25MAs. The distance from the 25MA is measured by number of standard deviations. %OB movements indicate the degree that markets and sub-sectors are experiences cash inflows and outflows (demand and supply).
Stock Screens are pulled from the lists of stocks by sub-sector. Traders can focus on stocks by a certain number of standard deviations from their MAs. The larger the number of deviations, the larger the distance from the MA, indicating the most-active stocks. Positive numbers are above the MA and negative are below.
The distribution charts plot the stocks in the market or sub-sector by the number of standard deviations from their 25MAs. The charts give a view of the markets and sub-sectors at a glance.
When used in conjunction with Market CAP and Volume Change analysis, this information gives traders a "new" tool to follow the most active sub-sectors.
The opening paragraph gives an indication of the likely direction for the markets today. Two of the most important factors in successful trading are 1) the market direction and 2)the most active sectors.
Traders now have a tool to help them identify sub-sector movements with stock screens to quickly identify the high probability stock trades.
The daily email report includes over 4,600 stocks on the NYSE and NASDAQ exchanges sorted into 41 sub-sectors.