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Ben,
Funny on how two people can look at the same chart and see something
different.
On the first chart you posted, at least to my eye, the decrease in volumes
circled seems to have occurred in a rally stage? One needs to be concerned
when that volume returns back above the line (the distribution)?
Don Ewers
----- Original Message -----
From: "Ben" <profitok@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Cc: <panda2222@xxxxxxxxxxxxx>; <ntt-list@xxxxxxxxxxxxxxx>; <jvc689@xxxxxxx>
Sent: Thursday, June 16, 2005 9:59 PM
Subject: [RT] evidence of distribution
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EVIDENCE OF DISTRIBUTION
6/16/2005
Evidence of Distribution
by Carl Swenlin
While persistently rising prices are frustrating the bears
and encouraging the bulls, there is evidence that distribution is taking
place.
On the first chart I have circled areas where daily volume
has scooped below its 250-EMA line, indicating that there was inadequate
sponsorship of the rising trend. In each of the first three cases shallow
volume preceded price corrections. The current volume dip, which has lasted
about six weeks, has yet to be resolved, but it seems reasonable to expect a
correction fairly soon, probably starting soon after we see final expansion
of volume.
The second chart shows a five-week period of NYSE Member
Net Selling, which is a fairly unusual because these insiders are normally
accumulating shares into declines (shares that will be sold during the next
advance). The NYSE delays reporting of these numbers by two weeks, so there
is a big question mark as to what Members have been doing during the last
three weeks; however, the large amount of net selling raises a red flag,
especially when viewed in the context of the shallow volume problems
discussed above.
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