After many years of watching the tape, this appears to be how Market Maker’s (formerly known as Specialists) accumulate inventory. It has always been a merchandising operation and Apple is just one example.
Step 1. Optimism: February 24, 2025
Apple announced they will spend $500 billion in the U.S. over the next 4 years.
Step 2. Uncertainty: March 3, 2025
Extremely large blocks started crossing the tape at the close each day.
Step 3. Fear: March 4, 2025 through March 8, 2025
March 4, 2024, CNBC discussed the potential impact tariffs will have on Apple.
March 8, 2025, Forbes Article– Apple Stock To Fall 30%?
Step 4. Sell: March 10, 2025
Market Makers accelerate the decline with a 4.8% drop during the day.
Step 5. Extreme Fear: March 11, 2025
The CNN Fear & Greed Index hit a low of 13.
Step 6. Buy: March 18, 2025
Between March 3 and March 18, 2025 a total of $15.7 billion in extremely large (7 figure) block trades crossed the tape. Who purchased this inventory? Market Makers formerly known as Specialists.
Step 7. Market Makers are now expected to move prices higher in 2025.
Note that this information is for educational purposes only and not a recommendation.
Stock chart courtesy of StockCharts.com.
