Monday, March 16, 2009

Distribution Day Monday

Today registered a distribution day in this rally. See for yourself:

  • From IBD: A day of mixed trading stacked a distribution day against the young rally, despite strong gains by transportation and financial stocks.
  • From Fallond Stock PicksNo surprise to see bulls taking money off the table after the gains in the market. Volume climbed to register a distribution day with some heavy trading in the Dow and S&P. Looking for some follow through downside tomorrow, the inverse doji lending to the bearish tone.
What's it mean?  I listened to Gary Kaltbaum's take on it this afternoon, and he said that having a distribution day so close to the follow through day was generally a bad omen for the market ("90% of the time," said Gary).  We have definitely seen that pattern before during this bear market.

Don't let it distract you from the all-important task of filling out  your March Madness brackets!

  • Obama to appear on Leno.  I'm expecting some good AIG jokes.
  • Toyota to discount price on Prius.  I'm not sure why someone would pay the premium for batteries when you could get a Honda Civic for waaaay cheaper.
  • ATT to replace their gasoline vehicle fleet with 8,000 natural gas cars.  ATT will convert Ford vans and trucks.  Nice.