On March 27, 1973 a 39.91 degree chart illustrated the expectation of a decline that is similar to what occurred in January 1973. It is not a coincidence that the current trend is similar to January 1973. This decline is expected to continue until key sentiment indicators reach their respective extreme positions.
Be aware of the following.
“Most investors will probably never make money in the market over the long run unless they learn to look at the market as a merchandising operation in which specialists manipulate stock prices in order to sell at retail what they bought at wholesale price levels.”
Richard Ney, Making it in the Market, 1975, page 33
Today’s Market Maker organizational structure controls the merchandising operation.
Stock charts courtesy of StockCharts.com.
