In 2021 a big block distribution pattern was observed between November and the first half of December. This occurred inside of a rising wedge prior to moving lower in 2022. Since March 2024 a significantly larger big block distribution pattern has progressed through a rising wedge shown below. This is an indication that Market Makers are expecting a much larger decline in 2024. Patterns indicate Market Maker inventory is being distributed with seven figure big blocks going to institutions, such as pension funds, corporations (buybacks), large hedge funds, etc.
“It is typical of the specialist’s (Market Maker’s) modus operandi, however, that, regardless of the trend then under way, specialist merchandising strategies will adapt themselves to exploit the profit potentials of bullish or bearish announcements.“
Richard Ney, Wall Street Gang, 1974, page 103
Charts courtesy of StockCharts.com.
