Shaking The Coconut Tree – November 1, 2011

[Pascal]

Today's turning into a major distribution day, with volume 65% higher than yesterday on NYSE and 45% higher on NASDAQ. The last 30 minutes will decide if it was hidden accumulation or not.
Billy

I think that we had hidden accumulation. One question is: "will we have margin calls tomorrow?"
If yes, waiting for a pull back early tomorrow could be good. I have taken some long positions.


Pascal

[senco]

Interpreting 'hidden accumulation' - is it mostly because of the DMF of the ETFs, ot is there something I could see on price/volume or other charts? ... I was trying to get some reading from the NH-NL breadth, and it seemed to deteriorate in the afternoon.

[Billy]

Interpreting 'hidden accumulation' - is it mostly because of the DMF of the ETFs, ot is there something I could see on price/volume or other charts? ... I was trying to get some reading from the NH-NL breadth, and it seemed to deteriorate in the afternoon.

Senco,
“Hidden accumulation” behind a distribution day would be detected by a positive intraday 20 DMF at the close (it closed at -40%) and a close above the intraday VWAP (all indices ETFs closed well below). I don’t see better ways to detect weakness buying by large professionals.
Billy