Frequently Asked Questions

Dr K Market Direction Model
The model went from a buy to a cash signal, then from a cash to a sell signal all on August 31, 2011. Yet August 31 was not a distribution day. Please explain.
Aug 31 was not a DD since the market closed slightly higher, midbar. However, the model looks at a number of variables with price/volume action among leading stocks and major indices being the most important. It also looks at market action in the days leading up to the sell signal. All taken together, intraday selling pressure was large enough to push the model into a sell signal.

Published: Sep 1 2011