RE: Drop After Hours?13 Feb 2021 12:56
My personal observation is that off hours various traders settle their dealings among themselves. some of them are UT's Uncrossing trading's meaning that they are done outside the LSE framework and the one opening the day was
2021-02-12T08:00:06.693 GBX 7,252 32,919 2,387,286 UT XLON (generally the spreads are open to the market after 2-3 min, there have been cases up to 6 when no spreads were sent to the open market)
then at the end of the day another of hour's transaction may have balladed the opening one:
2021-02-12T17:33:15.000 GBX 7,252 54,000 3,916,080 Off-Book XOFF
I couldn't find any strong correlation between these huge transactions and the next day prices nor the volatility during the day.
However each day for the SP I look at there are a large number of one share transactions which in my opinion are resistance breaks when people don't want to sell to give market signals that there are price movements, on the 12th there have been about 800 out of 22,500 transactions about 3.6%, which in my opinion is a lot. These one shares transactions have a very strong correlation with the trajectory of the SP during the day. Unfortunately to use it one has to sit all the day on the computer to look to the momentum of the trades which is another type of hobby :).