re: rio distribution happening?? Hi Datasponge,Thanks for your...

re: rio distribution happening?? Hi Datasponge,

Thanks for your comments, unfortunately I could not disagree with you more. Have explained it too many times on HotCopper to do it again.

Regarding "distribution" you are wrong - or at least talking about something different. Have you not heard the term "distribution phase" before with regard to trading in the stock market? We are not talking about a "distribution" as in a "dividend" from a managed fund.

It means a the period or "distribution phase" where larger players have decided that they want to offload stock at a certain price level. They support the market for as long as they can, in order to distribute the stock to unknowing newcomers. Once this period is over, there is usually a fall in the price, or the start of the downtrend.
Please read up on it - plenty on the internet. It is not what you are talking about.
Here's the first article I found in Google there are thousands of others.

From Investopedia website:

3. Distribution Phase
In the third phase of the market cycle, sellers begin to dominate. This part of the cycle is identified by a period in which the bullish sentiment of the previous phase turns into a mixed sentiment. Prices can often stay locked in a trading range that can last a few weeks or even months. For example, when the Dow Jones Industrial Average peaked in January 2000, it traded down to the vicinity of its prior peak and stayed there over a period of more than 18 months. But the distribution phase can come and go quickly: for the Nasdaq Composite, the distribution phase was less than a month long, as it peaked in March 2000 and then retreated quickly. When this phase is over, the market reverses direction. Classic patterns like double and triple tops, as well as head and shoulders top patterns, are examples of movements that occur during the distribution phase.

The distribution phase is a very emotional time for the markets, as investors are gripped by periods of complete fear, interspersed with hope and even greed as the market may at times appear to be taking off again. Valuations are extreme in many issues and value investors have long been sitting on the sidelines. Sentiment slowly but surely begins to change, but this transition can happen quickly if accelerated by a strongly negative geopolitical event or extremely bad economic news. Those who are unable to sell for a profit settle for a breakeven or a small loss


Cheers,

Christian