Just want to point out that I have fresh ‘buy’ signals in many of the key indexes and key sector ETF’s. There was a clear change in market dynamics earlier in the month but that now seems to have gone the other way. In other words, it appears, and I say this very cautiously, that “Buy the Dip” is now the rule of the day. I don’t know how long this will last as I do believe that sometime around the first of May this dynamic may once again reverse.
When the $TRIN closes above 1.00 on a green day, I call that Stealth Distribution. One day is just one day and this does not usually impact the market, though recently it has, though just in the short term.
On Wednesday and Thursday, the $TRIN closed just above 1.00 indicating that the pumps were being sold. This gets my attention, but then so do a lot of other things. However, today, with the market looking for direction on the green side, the $TRIN is sitting right around 1.30, +/- or tick or two. In the very short term, meaning today, that means that the market is under distribution even though it seems to be trying to rally. If the market should close green again today with a $TRIN reading over 1.xx, then we have true Stealth Distribution taking place.
In my experience this means that the Mad Men at the Helm are moving quietly to the side lines to protect profits. Further, it is also my experience that covert distribution of this nature is usually followed with overt distribution after a lag of two to three days. This means that if my theory is correct, we should see evidence of this by no later than Wednesday of next week.