While reviewing a bunch of TA types; many are rationalizing their particular takes on wave counts and other angles of charts, i ran across the theme that several thought there were indications of distributive tops in the market.
Point blank wrong. Average trade size for the gross NAZ market is falling, not rising, this data is clear. Since August 06, the size has fallen by about 6%.
Its far worse within the SIP issues where I collect individual data focused on the Trees versus the forest.
In the here and now, there are some institutional exchanges going on in big blocks between institutions, these trades are reported as gross volume, but they are not shares being made available to the open market. The lions share of all monthly volume occurs in these few exchanges.
Meanwhile I recently read that Europe has entered a period called De Equitization; whereas new equity is not keeping pace with demand, gross market supply combined with increased M&A Activity is creating serious shortage of gross tradeable equity product.
This trend mirrors US markets which have statistically been declining since 1996.....these are root supply problems. And have been central to our ongoing research.
Investors need to understand that market inertia is postured too purpose. In many cases, that purpose is to secure actual inventory for planned future performance. Its against this backdrop that market machinery, needs a serious audit.
I fully understand the distinctions and characterizations of the trade world and offset to the investment world, the sum of all interests leads right back to square 1.
If you own Trees that produce desirable wood at some future harvest date, and you can, because of your due diligence, nurture those trees and keep them healthy within a forest which transfers disease, you will win.
Investors have not been paid, this does not appear to be the time to harvest, particularly SIP issues, which are all on the cusp of another growing season.
charts are trade tools, but the charts cannot properly characterize the invisible hand of capitalism. Traders may move a stock to a pattern completion, but to confuse the pattern with the destination, is like saying the map is the territory. It is not. |
