It was the fruits of many months of accumulation by Wall Road corporations. I’ve mentioned this accumulation, or manipulation, again and again and over and indicated that it was the doubtless precursor to a giant inventory market advance. I’ve up to date a chart of the QQQ (ETF that tracks the NASDAQ 100) to point out how the QQQ has been collected/distributed all through the buying and selling day since its prime in November 2021. Test this out:

Let me present you the small print of every part:

Orange Bearish Manipulation Part

This was the interval the place Wall Road corporations had been transferring from aggressive shares to defensive shares. I mentioned this at first of 2022 after client staples (XLP) completely dominated client discretionary (XLY) throughout December 2021. This manipulation interval was additional proof that Wall Road was making ready for the kind of selloff that NO ONE was speaking about. Here is how the cumulative intraday buying and selling seemed from November 21, 2021 by means of January 3, 2022:

• Opening hole: +6.30
• 9:30-10:00am: +4.01
• 10:00-11:00am: -19.22
• 11:00am-4:00pm: +8.80

We had been seeing opening gaps greater and early morning shopping for, adopted by stability of day promoting. That, mixed with apparent rotation in “danger off” vogue spelled hassle for shares to open 2022. There was additionally excessive complacency within the choices world. This was the bulls’ final gasp short-term, previous to the beginning of a cyclical bear market.

Crimson Pure Distribution Part

This was the “run for the hills” part, when Wall Road corporations had been promoting all through the day to the unsuspecting public that broadly remained bullish. Aggressive areas of the market had been thrashed and there no indicators of accumulation at any level in the course of the buying and selling day. Right here was the cumulative intraday efficiency:

• Opening hole: -29.68
• 9:30-10:00am: -35.08
• 10:00-11:00am: -32.93
• 11:00am-4:00pm: -14.59

All through this era, we not solely noticed important hole downs from bearish media headlines, but in addition loads of promoting throughout your complete buying and selling day. The online buying and selling efficiency of each a part of the buying and selling day was adverse and bearish.

Gentle Inexperienced Bullish Manipulation Part

This was the interval the place you did not perceive what was taking place, until you had been “wanting beneath the floor” of the most important indices. It might have appeared that every little thing was terrible. The information was horrible concerning inflation, rates of interest had been being raised briskly, FedSpeak saved reinforcing that inflation was a serious downside, recession speak started, and many others. It led to very sizable gaps to the draw back and morning promoting, nevertheless it was adopted by a TON of intraday shopping for. This was a serious indication that Wall Road corporations had been completely content material to purchase each share that the general public was keen to promote. In brief, Wall Road was accumulating at low-cost costs. Here is how the cumulative intraday buying and selling efficiency seemed for this era:

• Opening hole: -44.89
• 9:30-10:00am: -33.79
• 10:00-11:00am: +8.67
• 11:00am-4:00pm: +42.48

Try this CRAZY morning distribution, adopted by the large accumulation all through the afternoon. There is a purpose why the primary hour of buying and selling is known as “newbie hour”. The persevering with terrible headlines despatched shares spiraling decrease all through this MANIPULATIVE interval on the opening bell. Then the herd saved promoting and promoting. The massive Wall Road corporations calmly sat again and waited for costs to drop within the morning hours with the intention to start shopping for in pressure all through the stability of the day. But, if you take a look at the technical image from Might 2022 by means of the tip of the yr, it supplied us ZERO indicators that the market was about to scorch greater. However Wall Road knew otherwise. They merely wanted to fill their coffers forward of everybody else – after which the enjoyable (bullishness) would start. I wrote and mentioned all of this in actual time, saying that it will result in a bullish advance forward. I additionally stated the CYCLICAL bear market was over. Most scoffed at this notion. Nicely, it led us to the resumption of the secular bull market advance – and the bears maintain combating the market’s power. These remaining bearish are paying the value and, for my part, the value will get steeper and steeper because the yr marches alongside.

Darkish Inexperienced Pure Accumulation Part

We’re simply scratching the floor on this 2023 rally. Make no mistake about it, we’re going greater – lots greater. I observe the place the cash goes and could not care much less about what the speaking heads are saying. IGNORE THE MEDIA and FOLLOW THE CHARTS. The massive Wall Road corporations are betting their cash on a major rally forward. You are able to do what you want, however I am following these corporations. The manipulation and ridiculous battle of curiosity on Wall Road is kind of obvious to me. These huge corporations like Goldman Sachs make investments their very own cash and their rich shoppers’ cash. Then they parade their “influencers”, err I meant to say “analysts”, out into the media to inform everybody what to purchase and promote and to inform us how low the market goes to go and the way poor earnings this quarter can be. In the meantime, their market making unit does the alternative of what these influencers (oops, my mistake once more) are telling us to do. It is fairly the racket. However guess what? It is our system and it is not going to vary. So you’ll be able to both be manipulated by it or you’ll be able to revenue from it. I select the latter for myself and for our EarningsBeats.com members. Able to see how the cumulative intraday buying and selling efficiency seems to be for 2023?

• Opening hole: -6.28
• 9:30-10:00am: +19.07
• 10:00-11:00am: -4.31
• 11:00am-4:00pm: +66.43

Hhhmmmm, a bit of completely different image, do not you assume? The primary a part of the day continues to be the weakest half, nevertheless it’s nothing like we skilled in 2022. The manipulation is ending. Why? As a result of Wall Road corporations have crammed their stockings they usually’d prefer to thank everybody for promoting them shares so cheaply in 2022. Because the QQQ set a 52-week excessive final week, Wall Road’s income soar. Welcome to Wall Road’s Starvation Video games!

Greatest Deal of the 12 months

We now have saved or made our EarningsBeats.com members thousands and thousands of {dollars} all through the “Starvation Video games.” Our robust conviction that January 2022 was the start of a cyclical bear market enabled members to both transfer to money or place themselves appropriately to reduce losses in the course of the worst a part of the bear market from January by means of June of 2022. I additionally very clearly acknowledged my perception that the mid-June 2022 low was a serious backside and repeated that perception in September 2022 once we accomplished a double backside. I’ve by no means wavered since and I have been confirmed right. And now I’m telling you that we’re going lots greater.

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Glad buying and selling!

Tom