RE: SP27 Mar 2024 21:26
WimbledonTom , the pattern is true but is down to how the buyback operates , namely volume. It can buy up to 25% of the order book volume , can’t lift offers. So based on a simplified view of trading volume , volumes pre the US open , ie 2:30 are 1/3 of the daily total , and that after the US opens (including the uncrossing) , with theUS to hold the hand of our market you see 2/3rds of daily volume. Why is this important? Well with little or no underlying volume in the morning , the buyback can have little to no effect, whereas in the afternoon (as it’s volumous) , means there is always an underlying buyer of up to 25% of the order book volume , thereby putting upward pressure on the stock. In short , buy ITV in the morning , and sell it in the afternoon. (Simplified f course as there will be days of a US sell off that will take everything down).