In November 2024 Intel was dropped from the Dow 30 and replaced with NVDA after its decline on very light volume between March 2021 and July 2024. There is a good reason for this. It took Intel out of the day to day spotlight of the news cycle. It also allows Market Makers to accumulate what they need to eventually move prices higher. Over the last several months INTC daily volume has continued to spike with a steady flow of extremely large blocks crossing the tape. A pattern similar to this occurred after 2009. It is unknown at this time what the incentive is for initiating this type of accumulation process, but it could continue over the next few years.
“It is only when they (Specialists currently known as Market Makers) 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
Note that this information is for educational purposes only and not a recommendation.
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