Dow
- Thread starter chasinfla
- Start date
Joe Kernan made what I think is a good point yesterday. The big money - funds, institutions, etc. - have made their money this year and are going to sit on it. Few are into taking new positions. Some tax loss selling and a little repositioning, but that's it. And that's what I'm seeing in the stocks I follow. Very little energy anywhere.
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QQQ is sideways, but still near 50 ema;
& SPY, DIA, $INDU look reasonably uptrendy, but took part of position off because of QQQ.
Looks like extended 5 wave ,which is permitted.
Actually couldnt find that much selling at 10k;
SPY went down less than 1% in September & -trend still friend
Look at the volume on atml, seems to be a lot of unloading.
When you look at all 30 components you will get a better picture.
It is known as printing or painting the tape
As public mostly knows about the Dow only, it is a very effective way to make the case for "the market is holding up well".
Dow is a simple average of the prices of its components and no weighting on market cap. Thus pushing one single component (in this case IBM) can have the effect of holding up Dow easily.
Maybe option expiration related, maybe distribution in progress, who knows