Category: Dow

Algorithms appear to be repeating the first week of May 2024. Between May 29, 2024 and June 5, 2024, a series of seven figure block trades crossed the tape at the close. This is very similar to what occurred during the last two weeks of April 2024. It is also similar to what occurred in the futures market between December 1, 2021 and December 6, 2021. The Dow is expected to continue moving higher, as it did in May 2024 until Market Makers start to move very large block trades again.

Charts courtesy of StockCharts.com.

Disclaimer

The following model perspective update provides key points on the Dow that align with 1971 – 1973 structures.  The Dow ultimately hit its low point in late 1974. Based on this update, the Dow currently aligns with mid-January 1973.

Charts courtesy of StockCharts.com.

Disclaimer

Taking a closer look at the Dow on a 95 year timeline, the 1929 trajectory shown below is currently in alignment with a move up in mid-2024 prior to starting a decline.

Disclaimer

Additional research shows Engrbytrade™ daily trade pattern structure calculation charts reflect patterns identified in the following Dow charts. The 2024 angle of support is 8.92 degrees during periods of Exchange Insider distributions. A pattern similar to this occurred during mid-1972 and late 1973 to early 1974 using a support angle of 15.39 degrees. It also occurred between March 2007 and August 2007 with a support angle of 20.03 degrees. Large quantities of stock were distributed during this time frame.

The Stock Exchange abets its specialists’ merchandising strategies by training investors to address their attention to business statistics, economic data, and other concepts that have but limited relevance for investment purposes.
Richard Ney, Wall Street Gang, 1974, page 85

Stock charts courtesy of StockCharts.com.

Disclaimer

On March 22, 2024 Engrbytrade™ daily trade pattern structure calculations indicated a move to dollars was in progress. Daily calculations continue to detect subtle changes in trading patterns that are similar to what occurred between August and October of 2021.  In addition to this, corporate insiders continue to sell.

Stock chart courtesy of StockCharts.com.

Disclaimer

On March 27, 1973 a 39.91 degree chart illustrated the expectation of a decline that is similar to what occurred in January 1973.  It is not a coincidence that the current trend is similar to January 1973. This decline is expected to continue until key sentiment indicators reach their respective extreme positions.

Be aware of the following.

“Most investors will probably never make money in the market over the long run unless they learn to look at the market as a merchandising operation in which specialists manipulate stock prices in order to sell at retail what they bought at wholesale price levels.”
Richard Ney, Making it in the Market, 1975, page 33

Today’s Market Maker organizational structure controls the merchandising operation.

Stock charts courtesy of StockCharts.com.

Disclaimer

One big tech company that has been a component of the Dow for decades is IBM. IBM’s structure between July 1972 and February 1973 is very similar to its structure between December 2022 and March 2024. Market Makers appear to be using the 1972 – 1973 IBM structure as a precursor for the next decline. It is not a coincidence that Market Makers are currently using companies, such as IBM, in a merchandising operation to push the Dow to new highs, while companies such as Amgen, Boeing, Nike, United Health, and Walgreens are being driven to lower levels.

It is typical of the specialist’s modus operandi, however, that, regardless of the trend then under way, specialist merchandising strategies will adapt themselves to exploit the profit potentials of bullish or bearish announcements.
Richard Ney, Wall Street Gang, 1974, page 103

Note that this information is for educational purposes only and not a recommendation.

Stock charts courtesy of StockCharts.com.

Disclaimer

On March 2, 2024 it was noted that a rise in the Dow between October 2023 and March 2024 was similar to what occurred between October and December 1972. Initial measurements indicate this move followed a 41.46 degree upper trend line. As of March 26, 2024, this measurement was updated in comparison with the peak in January 1973 using an upper trend line measurement of 39.91 degrees.

Stock charts courtesy of StockCharts.com.

Disclaimer

Engrbytrade™ daily trade pattern structure calculations indicate a move to dollars is in progress to avoid another decline in the stock market. In 2021 daily Dow structure decline signals occurred on August 24, 2021, September 17, 2021 and October 26, 2021. The result was a 21.9% decline in the Dow between January 4, 2022 and September 30, 2022

Recent daily Dow structure signals occurred on November 21, 2023, December 15, 2023, and March 4, 2024. Based on this series of Dow signals another significant decline is expected to start in 2024. When this decline occurs the U.S. Dollar will move higher, as it did in 2022.

In addition to the daily pattern structure decline signals shown below, public records indicate Jamie Dimon, Jeff Bezos, Mark Zuckerberg, Leon Black, and the Walton Family have sold a substantial sum of company stock.

Stock charts courtesy of StockCharts.com.

Disclaimer

Dow structure decline signals

Based on angles discussed on March 2, 2024 where algorithms appear to continue duplicating the 1973 Dow structure, an  Engrbytrade™ custom ratio measurement was taken from reference points where geometric lines intersect rather than using traditional Fibonacci structure points. Based on the 1973 Dow structure shown below, a brief decline is still expected, followed by a 1.65% move up  above the February 23, 2024 high to reach 45,763.88 (+/- 1%) before starting a long term decline.

Stock charts courtesy of StockCharts.com.

Disclaimer

The following chart provides a point eleven of thirteen update to reflect angles discussed on March 2, 2024.

Stock charts courtesy of StockCharts.com.

Disclaimer

Since mid-December 2023 a series of descending triangles have appeared that include Apple, Boeing, Caterpillar, Walgreens, and the Japanese Yen.  This is very similar to what occurred between April – September 2008 with stocks such as Apple, Chevron, Disney, and Goldman Sachs. Currency descending triangles in 2008 included the British Pound, Canadian Dollar, and Swiss Franc. Based on the current Japanese Yen descending triangle, it is a preliminary indication of positioning expected in the U.S. Dollar before moving higher, as noted on January 20, 2024.

Note that this information is for educational purposes only and not a recommendation.

Stock charts courtesy of StockCharts.com.

Disclaimer

On January 26, 2024 and February 4, 2024 it was noted how Market Makers move a group of stocks without revealing their intentions to the public while providing minimal impact on the Dow’s movement. Between February 1, 2024 and February 20, 2024 Market Makers conducted selective declines in Amgen, Cisco, Honeywell, and Verizon. In order to avoid a rush of broad retail selling an offset to this decline was setup with a move up in issues such as American Express, Caterpillar, Salesforce, Disney, JP Morgan, Merck, Travelers, and Walmart.  This was conducted to maintain the Dow within 50 point range between February 1, 2023 and February 20, 2023.

“Like the musicians in an orchestra, the ( Market Makers formerly known as Specialists) who conduct the movements of each of the Dow stocks work on behalf of their own interests while at the same time working for the fulfillment of the objectives of the system as a whole.”
Richard Ney, Making it in the Market, 1975, page 98

Note that this information is for educational purposes only and not a recommendation.

Stock charts courtesy of StockCharts.com.

Disclaimer