Read about the concept of price volume analysis and put it to use immediately. The concept is that MMs work like warehouses where before any price boom there will be a phase of consolidation where they will have to stock up their inventory by taking from public. Please note that the context here is uptrend. Here we have several snapshots of DBS pricings from 2016 to 2017. Can you see what’s going on?
Chart 1 from Sep 2016 to Nov 2016
Chart 2 from Feb 2017 to April 2017
Chart 3 from May 2017 to Sep 2017
So what is the conclusion?
MMs and BBs have made several rounds using only DBS stock. There is no reason why it should not continue.
In the immediate term, expect more tree shaking from now till christmas or new year. Expect more Boom after that based on global expectations.
We will see how it all pans out in 2 months time.
Econs is fun.