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Institutional Distribution of Leaders

Overview​

The Institutional Distribution of Leaders profile highlights liquid companies with strong EPS and Sales Ratings that are now showing institutional selling pressure. These are often well-known leaders where larger holders may be reducing exposure before the broader market fully reacts.

This profile is useful for tracking cracks in leadership, spotting early rotation out of strong names, and finding situations where institutional behavior no longer matches the company’s recent fundamental profile.

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

Strategy Focus​

  • Track strong stocks showing institutional selling despite high ratings
  • Spot early leadership breakdowns before price weakness becomes obvious
  • Monitor smart money exits from names that still look strong fundamentally
  • Use AI downside structure to confirm whether distribution is becoming actionable
  • Add a defensive overlay to leadership and growth watchlists
  • Compare leader distribution across industries and themes to detect broader rotation

Filters Applied​

This profile combines quality filters with institutional-selling filters:

  • Liquidity Rating > 70, ATRP 14D ≥ 0.5, Volatility (Month) ≥ 1: Keeps the list focused on liquid names with enough activity and movement.
  • EPS Rating ≥ 80, Sales Rating ≥ 80: Restricts the profile to stocks with strong earnings and revenue characteristics.
  • Accumulation/Distribution Score ≤ -2 OR Recent Institutional Action = Inst Selling: Requires visible institutional selling either across the last quarter or in the most recent 10 trading days.

These filters highlight distribution in leaders, not ordinary weakness.

Metrics Used​

Institutional Activity​

  • Recent Institutional Action: Detects selling behavior over the last 10 trading days and helps flag fresh institutional exits.
  • Accumulation/Distribution Score: Measures quarter-long buying and selling pressure. Scores of -2 or lower indicate meaningful distribution.

AI Strategy and Setup Quality​

  • AI - Alpha Strategy: Shows whether the developing weakness is also reflected in current structure.
  • AI - Risk/Reward: Helps judge whether the downside setup is becoming attractive enough to monitor closely.
  • AI - Path to Target: Shows how much support remains beneath the current price.

Volume, Liquidity, and Activity​

  • Volume All Hours: Confirms that distribution is happening with real participation.
  • Relative Volume: Helps identify unusual activity often seen when institutions begin reducing exposure.
  • Dollar Volume Rank: Prioritizes the most liquid and widely followed names.

Price Action and Technical Context​

  • Change Pre Market (%) and Change From Close (%): Help show whether the distribution is already translating into weakness.
  • RSI Divergence 14 Days: Can help flag momentum cracks in formerly strong names.
  • Universal Pattern Detection: Adds bearish pattern context around the selling signal.
  • Tight Range: Useful when leadership names begin compressing before a larger move lower.

Group Strength and Broader Context​

  • Industry Rating 1 Day and Theme Rating 1 Day: Help show whether selling is isolated or part of a broader group shift.
  • Industry Rating 1 Year and Theme Rating 1 Year: Add long-term leadership context when judging how meaningful the selling may be.
  • Relative Strength 1 Day and Relative Strength 1 Year: Help confirm whether the stock is starting to lose leadership.

Fundamental and Timing Context​

  • MarketAlpha Rating: Adds broader quality and strength context around the selling behavior.
  • EPS Rating, Sales Rating, Profit Rating: Help show that the name is still fundamentally strong, which makes the distribution signal more meaningful.
  • 52 Week High (%): Useful for tracking how close the stock remains to prior highs or how much leadership has already faded.
  • Next Earnings In Days: Helps judge whether institutions may be reducing exposure ahead of a catalyst.

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to prioritize the most liquid and visible names first.

Practical Use Cases​

  • Spot institutional selling in high-rated leaders
  • Track early cracks in momentum and leadership
  • Add a risk-control layer to growth and momentum watchlists
  • Compare distribution across strong names and leading groups
  • Build short or caution lists around leaders losing institutional support
  • Monitor where institutional behavior diverges from strong fundamentals