A previous post on February 3, 2025 noted that a global financial crisis is on the way. A closer look at Dow stocks on an arithmetic scale shows that it can be interesting to watch companies such as Walmart going parabolic. Walmart may stall, as it did in 2000 and move sideways for several years. But after Walmart hit its peak in 2000, the “tech bubble” popped and brought about losses that are still discussed today. There are numerous headlines about reducing the debt, Warren Buffett and Jeff Bezos selling stock, jobs, inflation, etc., etc. What is important are the positions that Market Makers are taking to setup for a decline. Since they run a “merchandising operation”, sales to pension funds, hedge funds, and large institutions would be in order at this point. In January 2025 there was a significant increase in the number of extremely large blocks of stock crossing the tape. As this occurred, active investment managers increased their exposure between the end of January and beginning of February.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
