Intermarket structural analysis research
Since March 31, 2025 seven figure block trades have been crossing the tape for Johnson & Johnson. A similar sequence occurred between January 6, 2025 and January 24, 2025. It appears Market Makers have been accumulating inventory between the 140 and 154 range. This aligns with the S&P Healthcare sector bullish percentage index.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
On March 19, 2025 seven steps provided an example of how Market Makers manipulate investors in order to accumulate or distribute inventory. The following chart shows an overlay of fear ratings on top of Market Maker price action and accumulation of inventory. Between March 3, 2025 and March 18, 2025 ten very large Apple block trades of over 5 million shares each crossed the tape . All of these trades occurred at the market close. It appears this is part of a much bigger Market Maker accumulation process. Additional data will be needed to confirm this.
A similar sequence of events occurred when ten very large Apple blocks crossed the tape between March 1, 2023 and March 16, 2023.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
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.
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.
On January 12, 2025 a preliminary review was done on the 1973 and 2025 Dow index structures. It was noted that the 1973 and 2025 charts were strikingly similar. Previous postings shown below indicate the probability of a decline in the Dow is increasing. Using the following posts, and charts with Fibonacci scales in place, a preliminary conclusion can be made that a decline is expected in the coming weeks. This decline could be similar to 2022 where volatility would be the norm.
1. Alignment of the 2018 and 2025 US 10-Yr Note vs 2025 Dow index.
2. Indications of capital moving to Swiss Francs.
3. The expectation of crude oil moving lower.
4. Market Maker accumulation of TLT.
5. The growing number of Dow stocks collapsing since 2020.
6. Engrbytrade markers pointing to a decline going into the end of 2026
7. As of November 9, 2024 the Buffett Indicator (Market Valuation to GDP) was 209%.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
On January 22, 2025 it was noted that futures traders held a substantial number of short positions in the Canadian Dollar on January 9, 2007, and May 30, 2017. After each short position peak, stock markets started moving higher over several months. After Canadian Dollar short positions hit a peak on July 30, 2024, the Dow, S&P500, and NASDAQ had a brief decline. During this decline the CNN Fear & Greed Index hit a low of 16 (Extreme Greed) on August 5, 2024. Stock markets continued to move higher.
Today, Non-Commercial futures traders still hold a substantial number of short positions in the Canadian Dollar. In addition to this, the CNN Fear & Greed Index hit a low of 15 (Extreme Greed) on February 28, 2025. At this point it is unknown if there is a direct intermarket correlation between stock markets and the Canadian Dollar. Additional data will be needed to study this interaction. In the interim, the Fear & Greed Index reading on February 28, 2025 indicates stock markets are expected to move higher.
The Canadian Dollar did move lower in the last quarter of 2024. The Bank of Canada noted that most of the depreciation is explained by the foreign exchange rate risk premium.
There are major signals from 2011 that are repeating today.
They include:
1. A significant accumulation of TLT,
2. Extreme futures trader positions in the Swiss Franc, Canadian Dollar, 10-Yr Note, and
3. The completion of a gold cycle.
In addition to the above signals a silent collapse of Dow stocks is in progress.
Based on the above signals a significant event is coming in the weeks ahead and would be expected to shake the financial system. It may not have an immediate impact on stock markets, but the flight to safety will be obvious. Interest rates will decline. A short quick decline in the stock market could occur, but affected stocks will drop dramatically as the year progresses. This also means the U.S. Dollar will start a long term trend to move higher over the next several years. Gold will immediately hit a peak and then start a long term decline as the Dollar moves higher.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
On July 23, 2024 British Pound Non-Commercial Futures Trader positions hit a record level. This British Pound connection has an intermarket relationship with U.S. stock markets. On July 17, 2007 British Pound Non-Commercial Trader positions peaked, as shown below. This was followed by a decline in the British Pound and U.S. stock markets in 2008. The British Pound just moved into a position that is similar to where it was in March 2008. Futures trader positions indicate a significant amount of capital is moving in preparation for a major stock market decline in 2025.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
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.
On December 19, 2024 it was noted that over the last several years Market Makers have been working on a parabolic structure for IBM. The following IBM charts include Engrbytrade™ markers within the structures. Connecting markers between 2010 and 2025 shows a projected low in the $60 to $70 range by mid- 2026. This aligns with the following S&P500 chart showing a projected low in 2026. A similar collapse occurred with Intel between April 2021 and February 2025. Markers still indicate Intel could drop below $10.
The following charts are also an indication that a global financial crisis is on the way. In 1987, Donald Bernhardt and Marshall Eckblad, from the Federal Reserve Bank of Chicago issued the “Stock Market Crash of 1987” essay. They included the following point. “….a new product from US investment firms, known as “portfolio insurance,” had become very popular. It included extensive use of options and derivatives and accelerated the crash’s pace as initial losses led to further rounds of selling.”
Today the growth of derivatives continues toward estimated values as high as $2.3 quadrillion. New speculative products such as Zero-Day options, Bitcoin ETFs, etc. are just a repeat of what led up to the 1987 crash.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
Based on extremely large block trades crossing the tape over the last four weeks, it appears capital has been moving out of stocks. This aligns with what occurred in August 2022 and August 2023 when active managers were reducing their risk exposure. In order for a sustainable rally to continue the index would first need to drop below the lower trend line with a reading of 60 or below. This would provide Market Makers with an opportunity to accumulate additional inventory before moving prices higher.
Note that this information is for educational purposes only and not a recommendation.
Source: National Association of Active Investment Managers
The Dow and S&P500 chart structures between October 7, 2024 and January 23, 2025 are similar to the Dow and S&P500 chart structures between July 29, 1929 and October 11, 1929. Current conditions noted on January 21, 2025 showed a repeat of the October and November 2023 chart structure with the potential of moving higher in 2025. This could change quickly depending on what the Fed does with interest rates on January 29, 2025. It is a wait and see situation with the Fed.
Note that this information is for educational purposes only and not a recommendation.
Stock chart courtesy of StockCharts.com.
Apple has declined 11.2% since December 26, 2024. As Apple continues to decline, the press will provide various excuses to retail investors. The press will never mention anything about Market Makers selling (distributing) big blocks of stock to institutions. Reviewing the 2024 – 2025 chart below, a continuous move upward would have been expected using an ascending triangle. There was some 2024 year-end big block selling. But, since then extremely large (7 figure) block trading activity started to increase as the stock dropped below its ascending triangle.
The current Apple chart structure and ascending triangle is a repeat of 2012, as shown in the second chart. Since Apple is 14th in the Dow’s weight ranking list, a decline should not have a dramatic impact on the index. With a mid-ranking weight Dow stock, a slow but steady decline, and the media continuously saying markets will move higher, retail investors are expected to end up with a loss.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
On December 28, 2024 it was noted that the last quarter of 2024 was expected to be a market peak period. This was based on the Wilshire 5000 to GDP Ratio hitting 203.69%. In addition to this the Dow continues to move higher while a silent collapse is in progress. The 2020 – 2025 list of stocks shown below have had significant declines from their highs as early as 2020. This is very similar to what occurred when the Dow moved sideways as stocks started a silent collapse between 2000 and 2001. By 2004 fourteen stocks in the Dow 30 had experienced a significant decline. This process started again in 2020 and will continue through 2025. Note that the 2020 – 2025 chart structure will not be similar to that of 2000 – 2004, but Market Maker techniques for a silent collapse will be.
“Like the musicians in an orchestra, the specialists (Market Makers) 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
The Silent Collapse Lists
2020 – 2025
BA – 2020 – 2025
DIS – 2021 – 2025
MMM – 2021 – 2025
INTC – 2021 – 2025
NKE – 2021 – 2025
VZ – 2021 – 2025
2000 – 2004
AAPL – 2000
AMZN – 2000
AXP – 2000 -2001
BA – 2001- 2003
CSCO – 2000 – 2001
DIS – 2000 – 2002
HD – 2000 – 2003
HON – 1999 – 2002
INTC – 2000 – 2002
JPM – 2000 – 2002
MCD – 2000 – 2003
MRK – 2001 – 2004
MSFT – 2000
PG – 2000
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
On July 23, 2024 a record level of Non-Commercial Futures Traders Net (Long-Short) positions was recorded for the British Pound. This is well above the previous record set on July 17, 2007. After the July 2007 futures positions peak there was a delay of approximately three and one half months before the Dow, S&P500, and NASDAQ started a decline. The 10-Yr Note yield was also in decline during this time. With a significantly larger number of futures trader positions recorded on July 23, 2024, a longer delay for a decline in the stock markets is anticipated. It has been five and one half months since the peak on July 23, 2024. The 10-Yr Note yield is currently in decline, as it was in 2007. A decline in the stock markets is still expected as capital from around the world continues to move into U.S. Dollars.
Note that this information is for educational purposes only and not a recommendation.
Stock and currency charts courtesy of StockCharts.com.
Up to December 11, 2024 investment managers were moving in a direction of being fully invested. Since that time the S&P500 moved down from 6084.19 to 5881.63 on December 31, 2024. The NAAIM index has moved back to a trend line where investment managers are expected to position for a brief rally followed by a decline. A move below the lower trend line would indicate another move upward is expected. Next week should provide additional insight into the direction stock markets.
Note that this information is for educational purposes only and not a recommendation.
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Note that this information is for educational purposes only and not a recommendation.
On December 26, 2024 it was noted that the December 2024 decline and rally was similar to what occurred in December 1972. A long term decline would be expected to start after the January 20, 2025 Presidential Inauguration. A very short term rally was conducted during the last half of December, but it is similar to what occurred in December 2022. It appears Market Makers have plans for a brief rally with markets eventually moving lower in 2025.
Key points for December 2024:
Note that this information is for educational purposes only and not a recommendation.
Charts courtesy of StockCharts.com.
On December 9, 2024 it was noted that the last quarter of 2024 was expected to be a market peak period. Volatility was also expected to increase before markets decline. Previous market peaks with +2 standard deviations in the 4th quarter include 1965, 1968, 1999, and 2021. As of December 26, 2024 the Wilshire 5000 to GDP Ratio was 203.69%. A decline is still expected in 2025.
Note that this information is for educational purposes only and not a recommendation.
Charts courtesy of StockCharts.com.
Over the last several years Market Makers have been working on a parabolic structure for IBM. On April 27, 2024 it was noted that this structure was developed based on a similar version Specialists built between 1986 and 1987. Structural calculations for the 2017 to 2024 IBM chart are similar to that of 1986 to 1987. It appears Market Makers are planning on a decline. Whether it is a 1987 version, or something less dramatic, remains to be seen.
“Like the musicians in an orchestra, the 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.
Charts courtesy of StockCharts.com.
Investment managers are moving in the direction of being fully invested as the Semiconductor Index continues to move higher. On November 27, 2024 the NAAIM Index hit 98.93, and two weeks later it hit 99.24. This occurred during a period of time while the Semiconductor Index was moving higher, and the S&P500 continued to decline. A similar situation occurred in 2018 when the NAAIM Index numbers hit 90.19 on September 12, 2018 and 90.73 on September 26, 2018. The Semiconductor Index peaked on September 20, 2018, and the S&P500 peaked on September 21, 2018. This was followed by a 19% decline in the S&P500.
Note that this information is for educational purposes only and not a recommendation.
Semiconductor Index charts courtesy of StockCharts.com.
Another pandemic collapse is planned to start in January 2025. If successful this will be a repeat of the 2020 market collapse on a much larger scale.
Chart courtesy of StockCharts.com.
On November 28, 2024 it was noted that as of November 9, 2024 the Buffett Indicator (Market Valuation to GDP) was 209%. As of December 5, 2024 the Longtermtrends.net Buffet Indicator new high hit 209.25%. This is well above the last peak in November 2021 with a value of 197% . Both peaks are above the +2.2 standard deviation range. With respect to positioning of markets, the last quarter of 2024 is still expected to be a market peak period. During this time frame volatility is still expected to increase before markets decline.
Note that this information is for educational purposes only and not a recommendation.
Charts courtesy of StockCharts.com.
As of December 4, 2024, the angle of points 1, 2, and 3 on the following NAAIM Exposure Index structure is similar to points 4, 5, and 6. In 2023 and 2024 extremely large block trades crossed the tape around the dates noted below. The S&P500 and NASDAQ 100 continue to move higher. A repeat of 2023 is expected as the Dow completes an ascending triangle.
Note that this information is for educational purposes only and not a recommendation.
Stock chart courtesy of StockCharts.com.
Between June and November, 2024 several large NVDA block trades crossed the tape above 119, as shown in the first chart. It appears Market Makers are conducting a merchandising operation by distributing stock to intuitions, pension funds, etc. Prior to Market Makers, Specialist performed the same operation.
“The cultural response of most investors is based on the assumption that “if somebody is buying, somebody is selling; not for a moment is it recognized that, in most cases “if somebody is buying,” it’s the specialist who is selling; and if “somebody is selling,” it’s the specialist who is buying.
Richard Ney, Wall Street Gang, 1974, page 150
Based on trades within the NVDA ascending triangle, a move upward would be expected going into December 2024. The following Fibonacci charts show today’s NVDA structure is very similar to that of CSCO in 2000. It should also be noted that overall, a market peak is expected in December based on the recent Buffett Indicator Review on November 28, 2024.
This information is for educational purposes only and it is not advice or a recommendation.
Scanning for block trades should be available on most major trading platforms.
Charts courtesy of StockCharts.com.
As of November 27, 2024 point 3 on the following NAAIM Exposure Index evaluation is in a position similar to where it was on November 22, 2023. This is based on the number of big block trades within an ascending triangle between September and November 2024. A similar big block trade pattern occurred within a falling wedge between September and November 2023. Apple is shown below to illustrate this. Investor optimism is moving higher, but it has not moved into the extreme greed range. It appears there is still room to move upward going into December 2024.
Note that this information is for educational purposes only and not a recommendation.
Stock chart courtesy of StockCharts.com.
