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To: minorejoy2000 who wrote (896)	7/25/2001 1:52:24 PM
From: HairBall	Read Replies (2) \| Respond to of 1328

minorejoy2000: When folks refer to accumulation or distribution it is in reference to the big boyz...<g> Efforts to discern when either occurs are nothing more than educated supposition. However, one can learn to track an animal based on the tracks it leaves and the habits it has displayed over time. A certain amount of ongoing accumulation and distribution occurs every day. However, it is often (not always) discernable when one or the other is occurring on a larger scale. Volume follows price movement... Regards, LG PS: I learned this from Richard Ney back in the mid eighties. I have to give credit where credit is due...<g> AMZN is a great stock for a look back to see how volume provides clues. Looking at the daily charts, shares were distributed into the rise from June 98 to July 98. Those shares were replenished (accumulated) in the following sharp drop into Sep 98. The Nov 98 run up into Jan 99 was used to distribute. The pattern can be found albeit in more of a stealth manner with accumulation into the Aug 99 dip followed by distribution into the rally into Dec 99. Note, sometimes the volume clues can be seen in a single one day spike. Don't expect the volume spikes to come on the high or low, although that does happen occasionally. You will note as the price began to head down in Dec 99 and Jan 00 the accumulation followed by one more distribution rally into Feb 00. After the price broke below the important support of 60 bucks accumulation dips (sharp drops) followed by distribution bounces can be seen at various time periods on the chart all the way down. The boyz are gonna make money on the way down, just as they did on the way up...<g> Sharp declines at the right price points, time or with breaking news begets individual investor selling (volume) which allows accumulation. Sharp rallies at the right price points, time or with breaking news begets individual investor buying (volume), which allows distribution. Keep in mind the big boyz do not always do this at the low or high, close is good enough and is not as obvious, especially when you know the direction to come in advance.