The Composite Man’s Bull Market Campaign by Pruden, Fraser, Bogomazov
Follow The Leader
Will the principles of 20th-century chartist Richard D. Wyckoff still work in today’s markets? You might be surprised. Here’s a reenactment of Wyckoff’s original campaign as applied to the 2008–14 stock market.
In the year 1931, Richard D. Wyckoff created a message of instruction to his subscribers and followers. It was an idealized account about how the “Composite Man,” or smart-money pool operator, would conduct a bull-market campaign. It explained in detail how the Composite Man would conduct the accumulation of a line of stock (that is, buying stock of a company over time) while prices were low and the public was depressed. It then discussed how the following markup phase was conducted. Finally, it discussed how the campaign was concluded, his line of stock sold to the public, and how the Composite Man would prepare for the subsequent decline via a campaign of distribution designed to exhaust the remaining demand of the late-arriving buyers.
IN TODAY’S MARKETS
Most of what Wyckoff noted then can be restated in the parallel scenario of the stock market from 2008–14. Here, we will use the recent/current bull market as a reenactment of the original campaign described by Wyckoff. We have made an attempt to utilize the same language that Wyckoff employed in depicting the Composite Man’s campaign when he first wrote it in 1931.