The first chart shows abnormally high daily trading volume. This, along with very large block trades continuing to cross the tape, indicates accumulation by Market Makers, hedge funds, etc. In the second chart, history has shown that similar events took place prior to a major stock market decline, such as 2007 – 2008.
Charts shown below are for research purposes only and are not a recommendation.
“By scrapping traditional theory it becomes possible to discover the true order of things, to show how the aspiration of investors can be linked to the aspirations of the specialist as he proceeds to merchandise his stock.”
Richard Ney, Wall Street Gang, 1974, page 88
Charts courtesy of StockCharts.com.
