In finance, distribution can refer to a number of different things, most of which have to do with paying assets from a fund, account, or individual security to an investor or beneficiary. Distributions from retirement accounts are among the most frequent and become necessary when the account holder reaches a particular age. A firm or mutual fund paying stock, cash, or other rewards to its shareholders is referred to as making a distribution. Finally, distribution is one of the four market phases (accumulation, ascending, distribution, descending) involving smart money activity. When a specific equity or index has reached smart money price target and they are satisfied with it, they are now are looking to sell. The sellout period that is about to begin is called distribution phase. This phase develops towards the end of an uptrend that has been lasting for while.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr