Here Comes The Markup
Institutions have been accumulating stocks for a year now. Want to know what happens next?
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All For Themselves, After All
In what should be a surprise to no-one, it would appear that all the while Big Money has been preaching recession, inflation, rising rates and our general move to Doomsville, U.S.A, they have in fact been…. doing the exact opposite with their own money!! Who could even have dreamed this could be?
If you look at stock after stock, ETF after ETF right now, you will see an accumulation pattern that began around April-ish 2022 and looks to be reaching a denouement right now. In essence, Big Money started accumulating once the Fed’s rate-hike program began, and as it comes to an end, so too is Big Money’s buying.
Now we don’t know the future, but we aren’t too shabby at pattern recognition. And this for all the world looks like what happens in a Wyckoff Cycle-type pattern. After accumulation, comes markup. Which is to say, once Big Money is done buying, wait to see the chatterati now start to focus on the New Bull Market and the Big Opportunity In Stocks and blah. This is in order to entice two kinds of buyer to enter the ring. The first is leveraged momentum funds. Smart money. Their strategy is, buy high sell higher. Nothing wrong with that if you know how to do it. The second is, retail. Who have a nasty habit of getting sucked in to deploy capital as the market rushes upwards, too late to catch the real turning point of course - and then selling as the market plunges, once again missing the turning point.
If the Wyckoff Cycle idea is new to you, take a look at our video on the topic, here:
We think that equity indices are likely to reach all time highs within the next 12 months or so. That’s not a new line from us - if you’ve been a subscriber here at Cestrian Market Insight you’ve heard us say this for many months now.
It’s possible we get a brief correction first, of course - the Nasdaq looks extended for instance - but each of the Dow, the Nasdaq, the S&P and the Russell 2000 is looking decidedly like they can break to the upside before long.
The Good Stuff
For our Premium and Pro subscribers we now dive deep into our longer- and shorter-term charts to look at how the indices are trending and what levels they may reach in a new all time high scenario.
If you’re yet to become a Premium or Pro member, you can sign up below.
One More Thing Before We Hit The Charts
Oh, by the way. Members of our Cestrian Inner Circle service love our ‘Morning Show’ videos in which we walk through our daily market analysis with charts and commentary, all posted as a private YouTube video. If you’d like to learn more about our Inner Circle service, you might take a look at these pages: