Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] accumulation/distribution days
Date: Sat, 15 Dec 2001 07:31:41 -0500
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Gotcha, that makes sense.
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Saturday, December 15, 2001 6:49 AM
Subject: Re: [CANSLIM] accumulation/distribution days
Hi Tom,
=20
I think it's semantics, so I'll stick with WON words again:
=20
What you are describing is what WON refers to as "a stock under =
accumulation" or a "stock under distribution." This is reflected in =
measures like DGO/IBD's weighted average of A/D over the last 13 weeks. =
(Values A to E) It describes the persistency of =
accumulation/distribution over a period of time.
=20
This is different than "an accumulation day" or "a distribution day" =
for the stock or market, which is what I defined. This is a single day's =
action rather than action over a period of time. When you read the Big =
Picture, they do not distinguish who is buying to determine if a day is =
an accumulation or distribution day. However, it is one reason why they =
talk about "subtle distribution" at market tops, i.e., high volume with =
little or no price movement up.
=20
Subtle differences, but with different applications.
=20
Katherine
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Saturday, December 15, 2001 4:39 AM
Subject: Re: [CANSLIM] accumulation/distribution days
Katherine, I must disagree somewhat on this. You describe what is =
probably a more traditional definition. But different sites will do it =
differently. DGO describes it as the result of a proprietary formula (so =
we don't get to know how they calculate it) which analyzes each days =
trading activity for both price and volume, and over a 13 week period.
One feature I really like, and use, with my quote service at =
FreeRealTime is a VWAP (Volume Weighed Average Price). I can look at it =
any time of the day and tell if a stock is being accumulated or =
distributed.
When I was an active broker, and getting first hand trading by WON =
staffers, the way they explained Accum / Dist to me was that =
accumulation was when the funds were buying it, distribution was when =
the funds were selling it to retail buyers. This latter situation is =
often characterized by high volume with little if any price gain. I =
suspect the DG / DGO proprietary formula is weighed along similar lines.
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Friday, December 14, 2001 11:01 PM
Subject: Re: [CANSLIM] accumulation/distribution days
Hi Rolf,
=20
The definitions of A & D are fairly straightforward, whether for a =
stock or a market index:
=20
An accumulation day is one in which the price ends higher on =
volume higher than the previous day.
A distribution day is one in which the price ends lower on volume =
higher than the previous day.=20
=20
So, for example, a warning sign that the market may be topping =
would be 4 distribution days within 2 weeks.
For a stock, many would consider it a sell signal if there were 2 =
days close together that were either distribution days or were days with =
high volume and little/no price progress.
=20
The follow-thru day is just a special application of an =
accumulation day for a market index. That is, after a market low has =
been printed, you're looking for accumulation of 2%+ within 4-7 days of =
the first rally off the low.
=20
Katherine
----- Original Message -----=20
From: rolf hertenstein=20
To: canslim@lists.xmission.com=20
Sent: Friday, December 14, 2001 8:59 PM
Subject: [CANSLIM] accumulation/distribution days
Just dug through HTMMIS and IBD's Investor's Corner Archives, =
and I
can't seem to come up with definitions for these. Is an =
accumulation day
one in which the DOW, S&P, or NASD rise on higher volume, or do =
they
need the same 2% rise on volume as a FT day? Ditto for a =
distribution day -
simple drop in a major index on higher volume, or is there also =
a % drop.
=20
Thanks!
=20
Rolf
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<DIV><FONT size=3D2>Gotcha, that makes sense.</FONT></DIV>
<DIV> </DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley<BR></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: =
0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A href=3D"mailto:kmalm@earthlink.net" =
title=3Dkmalm@earthlink.net>Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
href=3D"mailto:canslim@lists.xmission.com"=20
title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, December 15, =
2001 6:49=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Hi Tom,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>I think it's semantics, so I'll stick =
with WON=20
words again:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>What you are describing is what WON =
refers to as=20
"a stock <EM>under</EM> <EM>accumulation</EM>" or a "stock =
<EM>under</EM>=20
<EM>distribution</EM>." This is reflected in measures like DGO/IBD's =
weighted=20
average of A/D over the last 13 weeks. (Values A to E) It =
describes the=20
<EM>persistency</EM> of accumulation/distribution over a period of=20
time.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>This is different than "an =
<EM>accumulation=20
day</EM>" or "a <EM>distribution</EM> <EM>day</EM>" for the stock or =
market,=20
which is what I defined. This is a single day's action =
rather than=20
action over a period of time. When you read the Big Picture, they do =
not=20
distinguish <EM>who</EM> is buying to determine if a day is an =
accumulation or=20
distribution day. However, it is one reason why they talk about =
"subtle=20
distribution" at market tops, i.e., high volume with little or no =
price=20
movement up.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Subtle differences, but with =
different=20
applications.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Katherine</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A href=3D"mailto:stkguru@netside.net" =
title=3Dstkguru@netside.net>Tom=20
Worley</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
href=3D"mailto:canslim@lists.xmission.com"=20
title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, December 15, =
2001 4:39=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Katherine, I must disagree somewhat on this. You =
describe=20
what is probably a more traditional definition. But different sites =
will do=20
it differently. DGO describes it as the result of a proprietary =
formula (so=20
we don't get to know how they calculate it) which analyzes each days =
trading=20
activity for both price and volume, and over a 13 week =
period.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>One feature I really like, and use, with my =
quote service=20
at FreeRealTime is a VWAP (Volume Weighed Average Price). I can look =
at it=20
any time of the day and tell if a stock is being accumulated or=20
distributed.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>When I was an active broker, and getting first =
hand=20
trading by WON staffers, the way they explained Accum / Dist to me =
was that=20
accumulation was when the funds were buying it, distribution was =
when the=20
funds were selling it to retail buyers. This latter situation is =
often=20
characterized by high volume with little if any price gain. I =
suspect the DG=20
/ DGO proprietary formula is weighed along similar =
lines.</FONT></DIV>
<DIV> </DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley<BR></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A href=3D"mailto:kmalm@earthlink.net" =
title=3Dkmalm@earthlink.net>Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
href=3D"mailto:canslim@lists.xmission.com"=20
title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December 14, =
2001 11:01=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Hi Rolf,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>The definitions of A & D are =
fairly=20
straightforward, whether for a stock or a market =
index:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>An accumulation day is one in =
which the price=20
ends <EM>higher</EM> on volume <EM>higher</EM> than the previous=20
day.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>A distribution day is one in =
which the price=20
ends <EM>lower</EM> on volume <EM>higher</EM> than the previous =
day.=20
</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>So, for example, a warning sign =
that the=20
market may be topping would be 4 distribution days within 2=20
weeks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>For a stock, many would consider =
it a sell=20
signal if there were 2 days close together that were either =
distribution=20
days or were days with high volume and little/no price=20
progress.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT><FONT face=3DArial =
size=3D2></FONT><FONT=20
face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>The follow-thru day is just a =
special=20
application of an accumulation day for a market index. That is, =
after a=20
market low has been printed, you're looking for accumulation of =
2%+ within=20
4-7 days of the first rally off the low.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Katherine</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A href=3D"mailto:rolfh@mindspring.com" =
title=3Drolfh@mindspring.com>rolf=20
hertenstein</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
href=3D"mailto:canslim@lists.xmission.com"=20
=
title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December =
14, 2001=20
8:59 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Just dug through HTMMIS and =
IBD's=20
Investor's Corner Archives, and I</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>can't seem to come up with =
definitions for=20
these. Is an accumulation day</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>one in which the DOW, S&P, =
or NASD rise=20
on higher volume, or do they</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>need the same 2% rise on volume =
as a FT=20
day? Ditto for a distribution day -</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>simple drop in a major index on =
higher=20
volume, or is there also a % drop.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Thanks!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2> =20
=
Rolf</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BO=
DY></HTML>
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