Greedy's Vault - Volume 9

LevWedge Studios Presents

SUNDAY DECEMBER 10, 2023

WHAT'S INSIDE:

VOL.9

Dow Theory - the basics The Buttonwood Agreement Market Update- the Croc’s view Coming at ya - Santa Rally?

Puppets | Perspective | Finance

‘Tis the the Season - Greedy and Petey take It to the Street Welcome to a riveting edition of Greedy's Vault, where we're unearthing the time-tested wisdom of Dow Theory. This cornerstone of technical analysis offers a roadmap to understanding market trends and making informed decisions.

Dow Theory at a Glance Trust the Trend: Dow Theory suggests riding a trend until clear signs of reversal appear. It's like surfing – ride the wave confidently until it's time to paddle back.

Closing Price Matters: The closing price is deemed the most accurate reflection of the market's sentiment for Dow theorists, not the intra-day highs and lows.

Volume as Confirmation: A trend backed by high volume is more trustworthy. Think of volume as the chorus backing up a lead singer – it adds credibility to the performance.

The Three Phases of Markets: Both bull and bear markets experience three phases – the accumulation phase, the public participation (or big move) phase, and the distribution phase.

Breaking Down the Phases 1. Accumulation Phase: Savvy investors, the so-called smart money, begin to buy or sell, anticipating the next market move.

2. Public Participation Phase: The wider public jumps in, and the trend gathers momentum as media coverage ramps up.

3. Distribution Phase: Finally, the smart money starts to exit their positions, often unnoticed by the public, before a reversal sets in.

www.greedyshow.com

www.greedyshow.com SUNDAY, DECEMBER 10, 2023

VOL.9 PAGE 2

Other Tenets of Dow Theory: Market Manipulation Myths: Dow Theory posits that short-term market manipulation is unlikely to have a lasting effect on the overall trend.

Indices Don't Lie: The theory holds that indices discount all known information, meaning everything affecting a market – from fundamentals to investor sentiment – is reflected in the indices.

Indices Must Confirm Each Other: For a trend to be reliable, major indices like the Dow Jones Industrial and the Dow Jones Transport must confirm each other.

Primary, Secondary, and Minor Trends: Dow Theory differentiates between long-term (primary), mediumterm (secondary), and short-term (minor) trends.

Greedy's Insight: Dow Theory provides a lens to view the broader market movements and investor psychology. It's a framework that has stood the test of time, still relevant in today's digital trading age. By understanding these stages and signals, we can align our strategies with the market's natural rhythms.

As we tap into the market's pulse, remember that Dow Theory isn't about precision timing but about identifying the prevailing winds. Use it to steer your investment ship, and you may just catch a favorable current.

Keep your charts close, your analysis closer, and as always, stay Greedy for knowledge and growth!

Quote of the Week “The maxim ‘buy cheap and sell dear’ is as old as speculation itself, but leaves unsolved the question of when a security or a commodity is cheap and when it is dear, and this is the vital point.”

-Charles Dow

Signed May 17, 1792

The Buttonwood Agreement is indeed a cornerstone in the history of the United States financial system. This agreement marked the beginning of organized securities trading in New York City and laid the foundation for what would eventually evolve into the New York Stock Exchange (NYSE), one of the world's largest and most influential stock exchanges.

The agreement was named after the buttonwood tree (also known as the sycamore tree) under which the 24 stockbrokers and merchants gathered to sign this historic document.

The meeting took place outside of 68 Wall Street, a location that was already a burgeoning hub of commerce and finance in the city.

The essence of the Buttonwood Agreement was to create a more structured and formalized system for trading securities, primarily to instill a sense of order and fairness in the market. It stipulated that the signatories would trade securities only among themselves, would give preference to each other in transactions, and would charge a standardized commission rate. This helped in reducing the chaotic nature of the securities trading that was prevalent at the time, and it also provided a certain degree of exclusivity and trust among the participating brokers.

One of the key motivations behind this agreement was the need for a more reliable and trustworthy system in the aftermath of the financial panic of 1792. The panic had exposed the weaknesses in the informal trading system of the time, underscoring the need for a more regulated and structured approach.

The Buttonwood Agreement is celebrated for its simplicity and effectiveness in setting the stage for a more organized financial market in the United States. It's a testament to how collaboration and mutual interests among a small group of individuals can lead to the creation of an institution that stands the test of time and plays a pivotal role in the global economy. Over the centuries, the NYSE, which grew out of this agreement, has become an integral part of the global financial system, influencing economies and industries worldwide.

www.greedyshow.com SUNDAY, DECEMBER 10, 2023

VOL.9 PAGE 4

Gather ‘round Mutants, class is in session

This week in the vault, we're breaking down the subtle yet telling movements across the board: **Index Movements:** - **S&P 500 (SPX):** A slight uptick of 0.21% shows cautious optimism.

- **Nasdaq:** Outperformed with a 0.69% rise, hinting at a stronger tech sentiment.

- **Dow Jones Industrial Average:** Almost stationary with a mere 0.01% increase, reflecting a market in equilibrium. **Volatility Index (VIX) Shift:** - The VIX dipped by 2.2% to 12.35, indicating reduced market anxiety and a more confident investment landscape. **Greedy’s Tickers Trend Scan:** - Bullish signals dominate with over 1400 trends making their presence known in the scan.

- Bearish trends are in the minority at just 156, suggesting a retreat in negative market sentiment. **What This Means:** The indexes are nudging forward cautiously, with tech stocks showing more robust health.

The significant drop in the VIX aligns with a broadening comfort in market conditions. Bull trends in the scan vastly outnumber the bears, painting a bullish picture as we head into upcoming sessions.

As always, while the numbers are promising, stay nimble and ready to adapt. The market rewards those who keep their strategies as dynamic as the trends they follow. Stay informed, stay agile, and let's keep unlocking the potential of the markets together. Stay Greedy!

What’s coming next week? Here’s what Greedy and Petey are thinking about...

As we jingle our way toward the year's end, the anticipated Santa Rally seems to be on its merry path. But let's not get too comfortable just yet—2024 is peeking around the corner with its own bag of surprises. **Tom Lee's 2024 Market Outlook:** - **A Choppy Start:** Tom Lee, a seasoned market strategist often featured on CNBC, forecasts a turbulent start to the new year. It's a reminder that markets don't always follow a straight line— sometimes they zigzag.

- **Second-Half Surge:** Lee is optimistic about a robust second half, predicting gains exceeding 10%. It's like a slow start in a marathon with a strong finish.

- **Sector Spotlight:** Financials and small caps get a special mention, expected to take the lead and potentially outshine the broader market. **Greedy's Approach:** - **Data Over Predictions:** While predictions can guide us, we at Greedy's Vault rely on data and trends. Our 'Greedy tickers' and technical analysis are our compasses, helping us navigate through market sentiment and momentum.

- **Real-Time Trend Analysis:** By analyzing market trends as they unfold, we validate or challenge market predictions, keeping our strategies aligned with actual market movements. **Staying Prepared:** - **Watch the Indicators:** Keep an eye on those technical indicators. They often tell a story before the plot unfolds.

- **Diversify Intelligently:** While financials and small caps may lead, a diversified portfolio can help balance the inherent risk of market fluctuations. **Closing Thoughts:** Nobody has a crystal ball for the year ahead, but with insightful contributors and our own arsenal of technical tools, we can prepare for a variety of scenarios. Keep watching, keep analyzing, and above all, stay Greedy for growth and opportunity as we toast to the new year!

Remember, in the realm of investing, foresight comes from insight. Let's make the most of the festive momentum and gear up for a new year of possibilities. Stay vigilant, stay informed, and let Greedy's Vault light the way.

📈🎄🔔

www.greedyshow.com

Episode 9 - Welcome to Wall St. Now Streaming!