Big boys (Mutual fund owners and FIIs) are selling at top prices. I told you already that stocks do not look to be ready for aggressive move higher on Aug 3rd 2009. The big players are collecting their money and stepping aside. Nobody knows the future but the last weeks actions are not encouraging.
William O’Neil’s explains in his book “How to make money in Stocks” that if a stock falls on increasing volume twice in 4-6 days then institutional investors are selling the stock. This condition is called distribution. We see the same situation at NIFTY today.
Observe the selling of NIFTY in past 9 sessions marked below by arrows. There have been four distributions (high volume selling) days. This makes us cautious about near term uptrend. We are still in confirmed uptrend, a buying opportunity will be presented soon to those who are ready.
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