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To: sun-tzu who wrote (127584)	10/5/2001 6:31:37 AM
From: sun-tzu	Respond to of 436258

From Ken Wolff (10/04/01)... <Today marked the distribution phase that I talked about this morning during the "trend" talk post. Many asked me today why I thought they would start the distribution phase now, after a great day yesterday. What we are failing to realize is that we retraced more than 1,000 points in the Dow before marking yesterday's spike. Was I 100% sure we'd get distribution today? No, but the principles of tape reading suggest that it was a higher probability. Distribution in this phase, after a sharp spike, isn't so much marked by a strong selling that leads to new lows. Rather, distribution in this case is large volume on the buy side that doesn't lead to higher prices. This is the difference between distribution by smart money vs. selling by the public. The latter part of today was marked by public selling and smart money wasn't willing to step up and support it, so we had a downtrend into the close that I expected once we broke below NDX 1280.>