The following is a textbook example of what Richard Ney described in his book, Making it in the Market. TLT Market Makers were selling on light volume as they moved through a descending triangle, followed by a decline in 2023. Extremely large block trades started to appear in mid-November 2023 and still continue to occur. This is the current accumulation process where Market Makers are buying their wholesale inventory at the lows. When that is complete they will raise the price in order to sell at a higher retail price level.
“It is only when they (Market Makers formerly known as Specialists) are able to decline on light volume that they can afford to carry the decline to lower prices.”
Richard Ney, Making it in the Market, 1975, page 89
“To understand the specialists’ practices, the investor must learn to think of specialists as merchants who want to sell an inventory of stock at retail price levels.”
Richard Ney, Wall Street Gang, 1974, page 85
Note that this information is for educational purposes only and not a recommendation.
Chart courtesy of StockCharts.com.
