Consolidation or Distribution? (by Nathaniel Goodwin)

So my mom finally met with her financial adviser Michael Hawke; I have been asking her to meet with him again, suggesting she pull some money out of the market right now.

Mike told her that the market is consolidating right now and does not advise that, he even suggested she put a little more in so she doesn't miss the explosive move up. He pulled out some glossy charts of various indexes, and told her to look at the run they have had. Mike Hawke really loves the trannies and small caps right now and suggests to go in deep; however, according to a couple charts, that may not be a good idea.

The Williams A/D indicator is showing some bearish divergence in the $RUT and transports. Williams recommends using this indicator based on divergences:

Distribution is indicated when the security is making a new high and the A/D indicator is failing to make a new high. Recommendation = Sell.

Accumulation is indicated when the security is making a new low and the A/D indicator is failing to make a new low. Recommendation = Buy.

I still think we are in a distribution phase. Really confusing times right now, I can't wait to see what santa brings us then fat baby new year!