How
Can A Tiger-Trader Spot and Profit from Insider Selling And Big-Money Distribution? |
| More than anything else we watch for stocks going
sidewise in price, whose OBV is making new lows and whoese Accumulation Index readings are
mostly negative in the trading range. See NEM-2006 Prices make a new short-term high and the Tiger Accum.Index is negative. A Short-Selling "Setup" occurs when minor low is made with Accum. Index dipping below -.25 and a ralliy produces a red Sell from the 5-day Stochastic K-Line rising above 80 and turning down. DHOM - September/ 1. Prices fail to make a new high and then turn down. CRY, CQB, DSCO 2. A head and shoulders pattern appears and the neckline is violated. Red, negative Distribution appears on the right shoulder. CHNL, CQB, DSCO 3. The Violation of the neckline coincides with a break in the 50-day ma and a break in the uptrendline support. CHNL, CQB, DSCO 4. A Bearish Setup takes place. The Accumulation Index falls below -,25 after a failure to make a new high and with the 50-day ma falling. In this environment, initiate short sales at the declining red 21-day ma. CRY - Sept-October. 5. Support failure with red high volume in context of heavy red distribution warnings from consistently negative Accum.Index. CVR, NEM 4. The rally up to the top takes place on consistently negative readings from the Accumulation Index. DSCO 5. The Accumulation dips to under -.20. It then turns positive and rises. When the Accumulation Index then turns down below its own moving average ("ma"), it often an excellent point to SELL SHORT. AFR, CHNL, CQB, DLX, DSCO 6. Price gap down below earlier lows, where expected support might be expected, on high RED volume. Tiger charts show price bars as RED when volume is high. High RED volume confirms the price move. The gap also adds to the bearishness. It shows haste and desperation to sell. CHNL, CQB, CTHR, DSCO 7. Additional short sales should be taken on the next rally or two back to the falling red 21-day ma, provided the Accumulation index is negative (red) and the blue 50-day ma is falling. CQB, CTHR, CVR, DHOM, DLX 8. Additional short sales should be taken rallies back to the declining 50-day ma, especially when they fail or fall back below it. This should be done when the Accumulation index has been negative (red) for most of the previous two months. AFR Cover when stock closes back above 50-day ma. by 1%. You can always retake the short sale when the stock resumes the downtrend later by again falling below the 50-day ma. CRY, CVR, CTHR, DHOM |
