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Market Reading

Distribution

Also called: distributing, selling into

When institutions are selling their positions, usually visible as good news getting sold into or strong opens fading into weak closes. Since October 2025 the pattern of good earnings being sold into was a clear sign of distribution and it told me the environment was not healthy for swing trading.

In Context

At the time you can't point to why but looking back the distribution was already happening under the surface.

Counter Trend or Character Change·Digest

NBIS stopped same day, cut PL and ENPH Thursday after distribution picked up.

Remember This Week·Digest

The jobs report came in looking positive where it was supposed to be good news and the market gapped higher and then was sold into which is just a sign of distribution a reason we don't chase morning gap ups and a weak sign for the market.

Rotation to Defensive Names Continues·Digest

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