Distribution as a Stock Market Tool™
A SIMPLE WAY TO FOLLOW THE SMART MONEY DAASMT is a daily email newsletter produced by Charles Gawlak & Associates, LLC, Stamford, Connecticut. DAASMT provides technical analysis using distribution charts to analyze Price and Volume conditions along with Market Capitalization (CAP) and Volume Change tables on over 4,600 stocks listed on the N.Y.S.E. and the NASDAQ sorted into 41 sub-sectors.
START YOUR TRADING DAY
with our
DAILY MARKET DIGEST
MOST ACTIVE SUB-SECTOR INFORMATION
Driven by Price and Volume Analysis
Click "Sample" to view a recent Market Digest.
Distribution as a Stock Market Tool (DAASMT) is a daily electronic "newspaper" report filled with charts and tables on the 4,600 stocks on the NYSE and NASDAQ. (The 54-page report is delivered on Business days in pdf form via email.)
The Digest focuses on Price and Volume Analysis to determine the Most Active sub-sectors.
Spend a few minutes each morning scanning the charts and tables to understand where the money is flowing in the stock market.
Simplify your "what to trade" decision with our "Most Active Sub-Sectors From the Leader Board List."
Use the Most Active List as a starting point for near-term trading decisions on individual stocks, options or sector ETFs.
Distribution as a Stock Market Tool™ introduces
"Percentage OverBought (%OB)" for the number of stocks in a sector or market above their 25-day moving averages. The %OB for Price and Volume highlights the sub-sectors with the most stocks move above or below their 25MAs. The distance from the 25MA is measured by number of standard deviations. %OB movements indicate the degree that markets and sub-sectors are experiences cash inflows and outflows (demand and supply).
DAASMT contains Distribution charts that plot the stocks in the market or sub-sector by the number of standard deviations from their 25MAs. The charts give a view of the markets and sub-sectors at a glance.
These Distribution charts are not readily available on the Internet.
DAASMT combines Distribution Charts and tables with Market CAP and Volume Change analysis. The combination of these factors highlights the most active sub-sectors, typically attributed to the "Smart Money."
The opening paragraph "Markets Current and One Day Outlook" gives an indication of the likely direction for the markets today. Two of the most important factors in successful trading are 1) the market direction and 2) the most active sectors.
Traders now have a tool to help them identify sub-sector movements that are not always obvious.
The daily email report includes over 4,600 stocks on the NYSE and NASDAQ exchanges sorted into 41 sub-sectors.
Since the start of the Most Active Sub-sectors List in mid October 2009, the Most actives have tended to outperform the SPX with a similar standard deviation.
Click "Interview" to hear DASSMT on the Bloomberg Radio "Taking Stock with Pimm Fox" from January 11, 2010
COMING SOON
In addition to the DAASMT Daily Market Digest, we will be introducing a Daily Focus List with 4 stock picks everyday in a sub-sector from the "Most Active" list. These will be near-term trades to hold over the next 3 to 5 days. A new sub-sector will be added each day.
About Distribution as a Stock Market Tool™ (DAASMT)
Price and Volume analysis is presented in distribution charts comparing the Last Price and Volume for each stock to its 25-day Moving Averages (25 MA). Charles calls this the “Percentage OverBought” (%OB) for the percentage of stocks in a sub-sector or market above or below their 25MAs. %OB indicates the degree to which sectors are above or below their 25MAs. Using %OB in conjunction with CAP and Volume statistics can help active investors follow the “smart money.” The charts and lists of the 4600 stocks are provided daily, sorted by the number of standard deviations from their 25 MAs. Market Capitalization and Volume changes are also provided by sub-sectors.
The system uses Bell Curve analysis of the number of standard deviations for each stock compared to its 25-day Moving Average. The skew of the curve indicates the market condition or %OB. A skew to the right indicates money inflows or buying of the stocks in the sector or market, while a skew to the left indicates outflows or selling. A quick scan of the “skews” of the sector graphs and the Summary Table of %OB helps investors determine the degree to which certain sectors are seeing cash inflows and outflows, typically attributed to “smart money” buying and selling. This information can be used to help understand market movements, to decide where to allocate capital, and to make near-term trading or sector rotation decisions.
Active investors now have a simple tool to follow the “Smart Money” on the New York and NASDAQ equity market exchanges.