Monday, November 23, 2009

Distribution


I have posted a silver chart as a commodity example, but look at crude oil too. I actually took a short position in heating oil on the close. Look at the link below for examples of stock distribution. That was a really strong morning that got sold into in a big way across the board. (Of course across the board... its all one trade!) Anyway... I have been thinking.... you know how TBill rates went negative and are still very close to zero? One excuse I have heard for that move is that banks need a really clean balance sheet for the end of the year so they are buying bills. Well, what if what is left of the street needs to get down too? How would you do it? Maybe you could start a bid in the Sunday night thin market and create some good excitement Monday morning... and then spend the rest of the week hitting bids to unload a bloated balance sheet. Maybe.

http://stockcharts.com/scripts/php/candleglance.php?EWA,EWO,EWK,EWC,EWQ,EWG,EWH,EWI,EWJ,EWM,EWW,EWN,EWS,EWP,EWD,EWL,EWU

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