No matter how bullish the technical
structure of a stock is or how impressive its rate of growth and yield figure,
these things do not and cannot be guaranteed to influence prices!
Then it hit me…the only thing that can possibly
make a stock go higher is an imbalance of buyers and sellers. It is as simple
as that. When there are more buyers than sellers, prices will advance.
Conversely, when there are more sellers than buyers, prices will go down…
regardless of the fundamentals!
You see, to spot professional accumulation,
all we need to do is find an example of steady and determined buying in the
face of a weak stock market. When this happens we have a good idea that
professional buying is taking place.
Professional selling will show up when we
see consistent and determined selling in the face of a strong market. That is,
when the market is surging up, but selling pressure enter a particular stock we
can bet that we have a stock undergoing professional, informed selling.
Remember, we want to detect professional
accumulation and distribution. We’ve established that the best way to do this
to find individual stocks whose price action differs from the overall market.
By Larry Williams
