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Institutional Distribution of Leaders

Overview​

The Institutional Distribution of Leaders profile surfaces liquid companies with strong earnings and sales fundamentals that are currently showing signs of institutional selling pressure. These are names that have historically outperformed but are now being offloaded by funds or large investors, possibly signaling rotation, exhaustion, or looming weakness.

By requiring strong EPS and Sales Ratings alongside negative institutional activity signals, this profile highlights potential exits by smart money from well-known leaders — an important early warning signal for trend shifts.

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This profile updates in real time and includes only stocks with EPS and Sales Ratings ≥ 80, and either Accumulation/Distribution Score ≤ -2 or Recent Institutional Selling in the past 10 days.

Strategy Focus​

  • Flag stocks with strong fundamentals but showing distribution behavior
  • Spot early exits by institutions from high-quality names, potentially ahead of earnings misses or rotation
  • Use alongside reversal or short strategies to monitor leader exhaustion
  • Combine with AI structural metrics to confirm whether trends are deteriorating
  • Monitor potential sentiment shifts in popular names previously favored by funds
  • Support defensive screening by identifying risk of leadership breakdowns

Filters Applied​

  • Liquidity Rating > 70, ATRP 14D ≥ 0.5, Volatility (Month) ≥ 1: Ensures sufficient tradability and movement potential
  • EPS Rating ≥ 80, Sales Rating ≥ 80: Confirms strong recent financial performance
  • Accum/Dist Score ≤ -2 OR Recent Institutional Action = Inst Selling: Requires signs of institutional selling — either over the past quarter or in the most recent 10-day window

Metrics Used​

AI Strategy and Setup Quality​

  • AI - Alpha Strategy: Detects whether distribution coincides with AI-confirmed short setups — useful for confirming structural deterioration
  • AI - Risk/Reward: Assesses whether downside potential outweighs remaining support — important when leaders begin to unwind
  • AI - Path to Target: Measures how clean the downside move is by counting remaining support zones

Volume, Liquidity, and Activity​

  • Volume All Hours: Validates consistent participation across sessions — helps confirm if distribution is occurring under heavy trading
  • Relative Volume: Flags unusual activity — a common trait when institutions quietly begin to exit popular names
  • Dollar Volume Rank: Surfaces names with high capital turnover and institutional visibility

Price Action and Structural Signals​

  • Change Pre Market (%), Change From Close (%): Track recent weakness or signs of breakdown momentum
  • RSI Divergence 14 Days: Helps identify overbought leaders showing momentum cracks or reversal setups
  • Universal Pattern Detection: Flags bearish formations or late-stage patterns that align with institutional selling
  • Tight Range: Detects setups where price compression precedes larger breakdowns

Sector and Theme Context​

  • Industry Rating 1 Day, Theme Rating 1 Day: Show how groups are behaving today — useful to assess whether the exit is stock-specific or group-wide
  • Industry Rating 1 Year, Theme Rating 1 Year: Provide macro context for assessing leadership risk
  • Relative Strength 1 Day, Relative Strength 1 Year: Support identification of cracks in former leaders

Fundamentals and Timing​

  • Recent Institutional Action: Highlights near-term fund behavior — strong confirmation when recent selling aligns with structural weakness
  • Accumulation/Distribution Score: Measures institutional selling pressure over the past quarter — critical for spotting smart money exits
  • MarketAlpha Rating: Gives a holistic strength snapshot, often deteriorating when selling begins
  • EPS Rating, Sales Rating, Profit Rating: Show that the company is still fundamentally strong — making the distribution behavior more meaningful
  • 52 Week High (%): Indicates distance from recent highs — useful to track potential reversals from overextended levels
  • Next Earnings In Days: Helps time exposure around upcoming reports, especially if institutions are reducing ahead of volatility

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to prioritize names with high liquidity and institutional interest — ensuring visibility into the most notable exits.

Practical Use Cases​

  • Spot institutions selling out of strong performers
  • Monitor names at risk of momentum reversals or breakdowns
  • Combine with reversal or short screens to identify early-stage unwind setups
  • Track signs of smart money rotation out of popular names
  • Evaluate former leaders that may face sentiment or earnings-related pressure
  • Reduce exposure to names with negative institutional flow despite strong fundamentals