William O' Neil
"January is the most common month of the year for a bull market to top. And April is the second-most common month. This year the market started going through a distribution process in January that extended through April. We are in year three of a bull market. In past bull markets, the averages might rise 2% or 3% or 4% in such a period.
The number of distribution days that signals a probable top has changed over the years. This is due to the markets being so much larger than before. Institutions are managing a lot more money these days.
A: It used to be that three, four, or five distribution days would occur before a top was signaled. Nowadays, it can be up to six distribution days. What most investors don't realize is that a market will undergo distribution as it is advancing."
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