Tuesday was the 6th Distribution Day on the NYSE over the last 3 weeks. That’s a bearish sign that is an outright sell for some investors. Yesterday’s volume was extremely high and the selling occurred after 2PM and there was huge unchanged volume. This looks like classic distribution where the smart money unloads their stocks to the dumb-money.
That may be too simplistic (I’m no expert on distribution), but today’s weakness is enough to get me to sell my UWM position. It’s probably early, but leveraged ETF’s can lose money fast if the market turns so I want to take profits beforehand.
I’ll replace the leveraged ETF with a Russell 2000 ETF.
