OK, today was a “DAD” day… the days when I go to help him with various things. It was a pretty normal visit today… update his checkbook and bank accounts, make sure he has what he needs and nothing is out of sync. Pick up the few notices that I need to keep from his mail. We still have most things sent to him, I get all the bills so he does not worry about them, especially the medical and Medicare as that is a total project to link up charges and payments, and other things as most will be 6 to 9 months delayed… (we have all forgotten what went on back then). We then had lunch, and a trip to the skin doctor to get some more little cancers froze and take a check of another sore on his face.
It was just another day doing those things, didn’t see anything really out of the ordinary (that I can write about) nor anything exciting.
I got home early and did some reading and some of that was in conjunction with investing. I am always reading some of the traders or investors talk or write about two terms that seem important… I had a good idea what they were but helps to get a better definition and here is what I found –
Consolidation:
Definition of ‘Consolidation’
In technical analysis, the movement of an asset’s price within a well-defined pattern or barrier of trading levels. Consolidation is generally regarded as a period of indecision, which ends when the price of the asset breaks beyond the restrictive barriers. Periods of consolidation can be found in charts covering any time interval (i.e. hours, days, etc.), and these periods can last for minutes, days, months or even years. Lengthy periods of consolidation are often known as a base.
Investopedia explains ‘Consolidation’
The levels of resistance and support within the consolidation are created through the upper and lower bounds of the stock‘s price. Once the price of the asset breaks through the identified areas of support or resistance, volatility quickly increases and so does the opportunity for short-term traders to generate a profit.
Read more: http://www.investopedia.com/terms/c/consolidation.asp#ixzz1r7pX0Thc
Looking for charts to explain this:
bullish rounding bottom chart pattern, which shows stock consolidation.
stock begins to consolidate. We call that consolidation base building
The next term was Distribution –
Definition of ‘Distribution Stock’
Distribution stock refers to a large block of a security which is sold into the market gradually in smaller blocks rather than in a single large block. This is typically done to avoid inundating the market with the security and driving down the average selling price of the securities.
Investopedia explains ‘Distribution Stock’
It is often necessary for large investment funds to employ traders to watch the market and gradually liquidate significant holdings of securities at the best prices possible. These traders employ a number of techniques to sell distribution stock over time. If a trader is successful, he or she can sell a large position over a period of days, weeks or months without depressing prices or tipping off others to the presence of a large seller in the market.
Read more: http://www.investopedia.com/terms/d/distribution-stock.asp#ixzz1r7rivjJi
and I looked for a chart to represent this pattern and this is what I found:
Notice the distribution day this stock had where marked.
But I also got this in the search for distribution and wonder how it links? (note it was in the first 5 images?)
The info for it was: intended for resale or distribution. Buying
Looking beyond the obvious this came up:
“Buying Royalty Free Photos to Produce Products Intended for Resale”
Oh well you learn something new every day! right?
REX