The Wyckoff Method: Unveiling the Hidden Game of Latham Group Inc. (July 2025)

Alright, fellow sleuths, grab your magnifying glasses. We’re diving into the mysterious world of Latham Group Inc. (LTHM) through the lens of the Wyckoff Method. This isn’t your average retail investor’s playground—this is where the “smart money” plays, and if we’re sharp enough, we might just catch a glimpse of their next move. Let’s crack this case wide open.

The Latham Group Enigma: A Stock with Secrets

Latham Group Inc. has been quietly building a reputation as a growth-oriented player in the industrial sector. But here’s the thing about growth stocks—they don’t just grow on trees. They’re cultivated, nurtured, and sometimes manipulated by those in the know. The Wyckoff Method is our detective toolkit, designed to sniff out the footprints of the “composite man” (aka the big players) as they accumulate or distribute shares.

Right now, LTHM is sitting in a trading range, bouncing between $50 and $60. That’s the kind of sideways action that makes Wyckoff traders perk up. It’s not just noise—it’s a potential setup for something bigger. The question is: Are we in an accumulation phase, or is this just a pause before a distribution phase? Let’s dig deeper.

Phase One: The Accumulation Clues

1. The Preliminary Support (PS) Phase

If we’re in an accumulation phase, the first clue is the Preliminary Support (PS) phase. This is where the smart money starts buying, but the price action is still weak. Volume is low, and the stock is trading in a tight range. Looking at LTHM’s recent action, we see a period in late June where the stock hovered around $52-$54 with minimal volume. That’s textbook PS behavior—buyers are testing the waters, but sellers still have the upper hand.

2. The Selling Climax (SC) and Automatic Rally

Next comes the Selling Climax (SC), where the last of the weak hands panic and sell. For LTHM, this could have been the sharp drop to $50 in early July, accompanied by a spike in volume. The SC is followed by an Automatic Rally (AR), where the stock bounces back up. Sure enough, LTHM rallied back to $55 shortly after that drop. This is the smart money stepping in to absorb supply.

3. The Test (T) and the Spring

Now, the real test begins. The stock retests the lows, but this time, the selling is exhausted. If LTHM dips back to $50 but fails to break below it with strong volume, that’s our Test (T). If it then springs back up (the “spring” phase), that’s the signal that accumulation is complete, and the markup phase is about to begin.

Phase Two: The Distribution Warning Signs

But wait—what if this isn’t accumulation? What if the smart money is actually distributing? That’s the other side of the Wyckoff coin. Distribution is the reverse of accumulation, where the big players unload their shares before a downtrend.

1. The Preliminary Supply (PSy) Phase

In distribution, the Preliminary Supply (PSy) phase is where the stock starts to weaken after a rally. If LTHM had a strong run-up to $60 in June, followed by a gradual decline with low volume, that could signal the start of distribution.

2. The Buying Climax (BC) and Automatic Reaction

Next comes the Buying Climax (BC), where the last of the latecomers pile in, driving the price to a new high. If LTHM surged to $62 in July with heavy volume, that could be the BC. The Automatic Reaction (AR) is the subsequent pullback, where the stock drops back to $58-$60.

3. The Test (T) and the Upthrust

The final phase is the Test (T), where the stock retests the highs but fails to break through. If LTHM rallies back to $62 but can’t hold it, that’s the Upthrust. The smart money is done selling, and the downtrend is about to begin.

The Market Context: LTHM in the Broader Picture

Now, let’s zoom out. The Wyckoff Method isn’t just about individual stocks—it’s about understanding the market environment. Right now, the industrial sector is showing relative strength, with LTHM leading the pack. That’s a bullish sign. But if the broader market starts to weaken, even the strongest stocks can get dragged down.

Relative Strength and Sector Leadership

LTHM has been outperforming its peers, which is a good sign. But we need to confirm that the accumulation phase is real. If the stock breaks out of its $50-$60 range with strong volume, that’s our confirmation. If it fails, we might be looking at a distribution phase instead.

Volume Analysis: The Silent Witness

Volume is the silent witness in this investigation. During accumulation, volume should decline as the stock moves sideways, then spike during the markup phase. During distribution, volume spikes during rallies (as the smart money sells) and declines during pullbacks. For LTHM, we’re watching for volume trends to confirm our suspicions.

Growth-Oriented Trading Recommendations

So, what’s the play here? If we’re right about accumulation, LTHM could be setting up for a significant move higher. Here’s how to trade it:

1. The Accumulation Play

– Entry: Wait for the spring phase (a bounce off $50 with strong volume).
– Stop-Loss: Place it below the recent low ($48-$49).
– Target: The next resistance level is $65, then $70.

2. The Distribution Play

– Entry: If the stock fails to hold $60 after the Upthrust, consider shorting.
– Stop-Loss: Place it above the recent high ($62-$63).
– Target: The next support level is $45.

3. The Neutral Play

If you’re not sure, wait for confirmation. The Wyckoff Method is about patience. Let the market reveal its hand before making a move.

The Bottom Line

Latham Group Inc. is a stock with potential, but like any good mystery, it’s not giving up its secrets easily. The Wyckoff Method gives us the tools to decode the actions of the smart money, but it’s up to us to piece together the clues. Whether LTHM is in accumulation or distribution, the key is to stay disciplined, manage risk, and let the market prove its intentions.

So, fellow sleuths, keep your eyes peeled. The game is afoot, and the next big move in LTHM could be just around the corner. Stay sharp, stay patient, and most importantly—don’t get caught on the wrong side of the smart money’s play. Happy trading!