The EuroDry Ltd. Selloff: A Wyckoff Detective Story

Seriously, folks, if you thought Black Friday was chaotic, try analyzing a shipping stock during a market meltdown. I, your favorite mall mole, recently dug into EuroDry Ltd.’s July 2025 selloff using Richard Wyckoff’s legendary trading methodology. Spoiler alert: the Composite Man was up to his old tricks again.

The Accumulation Phase: Where the Smart Money Was Playing Hide-and-Seek

Let’s rewind to early 2025. EuroDry’s stock had been in a prolonged downtrend, making it the perfect candidate for institutional accumulation. The Wyckoff Method teaches us to look for specific patterns during this phase, and EuroDry delivered:

The Markup Phase: When the Composite Man Starts Throwing Parties

From July 2025 onward, EuroDry entered its markup phase. The stock rallied from $14.50 to a high of $22.30 by mid-July. Here’s how Wyckoff traders would have identified this:

– Breakout: The stock decisively broke above the $15 resistance level on strong volume.
– Retest: After the initial surge, the stock pulled back to $16.50 before continuing higher. This retest confirmed the breakout.
– Volume Confirmation: Each rally leg was accompanied by increasing volume, signaling institutional buying.

The Distribution Phase: Where Retail Investors Get Played

Now here’s where things get interesting. By late July 2025, the selloff began. The stock dropped from $22.30 to $16.50 in just two weeks. Wyckoff traders would have seen the following distribution clues:

AI-Powered Buy and Sell Recommendations: The Future of Wyckoff Trading

Now, I know what you’re thinking: “Mia, this is all well and good, but how do I actually trade this stuff?” Well, lucky for you, AI is here to help. Modern trading platforms now offer AI-powered recommendations based on Wyckoff principles. Here’s how it works:

Buy Recommendations

– Accumulation Phase: AI algorithms can identify preliminary support levels and selling climaxes, alerting traders to potential accumulation phases.
– Breakout Confirmation: When the stock breaks out of its trading range on strong volume, AI can provide buy signals.
– Retest Confirmation: AI can confirm retests by analyzing volume and price action, ensuring the breakout is legitimate.

Sell Recommendations

– Distribution Phase: AI can detect preliminary supply and buying climaxes, warning traders of potential distribution.
– Automatic Reaction: When the stock fails to hold key support levels, AI can provide sell signals.
– Upthrust Identification: AI can identify upthrusts by analyzing volume spikes and price action, helping traders avoid the final distribution phase.

The Bottom Line: Why Wyckoff Still Rules

So, what’s the takeaway from EuroDry’s July 2025 selloff? The Composite Man is still running the show, and Wyckoff’s methodology is as relevant as ever. By understanding the phases of accumulation and distribution, traders can align themselves with institutional activity and avoid getting caught in the wrong side of the market.

And with AI-powered tools, applying Wyckoff’s principles has never been easier. Whether you’re a seasoned trader or a newbie, understanding these concepts can give you a significant edge in the market.

So, next time you see a stock making suspicious moves, remember: the Composite Man is probably up to something. And with Wyckoff’s methodology and a little help from AI, you can be one step ahead of the game. Now, if you’ll excuse me, I’ve got a thrift store haul to inspect. Happy trading, folks!