In September 2023 it appeared Market Makers started accumulating TLT. This accumulation is similar to what was accomplished between May 2010 and March 2011. The following charts show a 12.34 degree trend line supporting their accumulation process. After their accumulation was completed in 2011, the Fed sent a message announcing a plan to peg interest rates at ultra-low levels. This was meant to boost growth in the economy.
It appears they are currently planning to follow the same accumulation process using a 12.34 degree trend line. On January 6, 2025 Fed official Lisa Cook delivered a blunt message to the stock market noting that valuations are elevated.. Using this signal from the Fed, Market Makers can now work on wrapping up their accumulation effort. Over the last month extremely large blocks have continued to cross the tape. Market Makers will be finished long before the Fed announces any actions to lower interest rates.
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 [Market Makers] as he proceeds to merchandise his stock.
Richard Ney, Wall Street Gang, 1974, page 88
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
