Are we looking at distribution?

January 11th, 2017, 10:09 PM

Back in February 2016, I made a post regarding what was up with all the buying at the ramp and close.

Here is the pic prior to the major bottom in markets.

Now I am seeing similar traits on the tape but inverse. The past few days has been EERILY weird. You can see for example on TF and on other majors, we have been testing the lows all the way down to 100% instead of making a higher low intraday. It honestly seems like the big boys are taking every opportunity they can get to SELL. But what do I know

Intermarket analysis that I do is starting to show bearish signs and with today's action...it seems to be confirming it. Now the only question is the volatility drop today into the close. My guess is that we get a huge selloff in volatility to (fakeout) and pretend everything is fine and no fear rally to the moon in equities before reversing much like we did in Feb 2016.

January 12th, 2017, 10:14 AM

I'm unfamiliar with your terminology shown on the first chart, open Ramp and close Ramp, could you comment? Thanks

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January 12th, 2017, 06:32 PM

bearpondtrader

I'm unfamiliar with your terminology shown on the first chart, open Ramp and close Ramp, could you comment? Thanks

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Are you aware of the 3:30 ramp? Usually at that time ET, indexes like to rally into the close(probably because we are in a bull market). But its usually smart money since big forces come into play during the open and close. So when we were near major bottom in the markets, the smart money was buying at those times accumulating while the tone of the market was very bearish.

Now I feel the same thing is happening but inverse....

Are we looking at distribution?

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Are we looking at distribution?