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It's quite straightforward. On large stocks we have operated an electronic matching system for the last 10 years.
lol we do agree on something finally. And that's exactly why a short cover has an impact on prices, specifically for a low volume stock like this one. Imagine if that buyer wouldn't be in the book that day? where would the stock go? given your previous messages I assume you are retired. I guess you are not familiar with how the markets works these days.
''those buys put pressure in one direction other than another.''
That's incorrect. For every buy there is a sale.
It is the weight of supply and demand that determines price direction
that is incorrect. Not sure what you were doing in your old days in HSBC but you seem to misunderstand the pressure in the book a sale order can put. At market, limited etc etc all these put different pressure, but I don't want to go too much in tech details.
That would hold more weight if Whitebox had completely closed. They still have a short position. If they closed completely then it would be valid to say that they see better possibilities elsewhere.
incorrect. it's valid even just for a reduction, and 30% is a substantial one. Also you need to think how quick they can close without having a huge impact on prices with these volumes. maybe they wanted to close faster but they couldn't. But this is speculation. the fact is that they reduced a short position and that can only be positive for the stock.
Buying is taking place throughout the day, every day.
lti correct and every day those buys put pressure in one direction other than another.
If you want to read another message, then that is your choice to do so.
there is only way you can read this. unless you think they are stupid and they want to miss potential profit. if they think the SP will go further down they would increase their short position not the other way around.
hedge fund reducing their short position is clearly a positive for any stock and it does impact the SP in 2 ways. Firstly to reduce their position they need to buy. Secondly, it's the message coming out of that decision. Whether they want to divert their interest on some other trading ideas or just reduce their risk bottom line is they are re evaluating their position and they believe the trade off risk/reward is moving against.
otherwise this is going really south...
we are at the bottom of a channel for the uptrend that started the end of September, tested again the 23rd and 24th of October and the 1st of November. EOD close below 210 will open the stock to new lows. I might close my long position and reverse if that happens.
Daily average volume I believe is at about at the 3 million mark?
I will let you work out how long it takes for an equivalent of 10% of the
shares in issue changes hands
I thought you were referring to the short position when you posted "About 10% of share capital is sold every month.
if not than the post is misleading... "about 10% is bought and sold every month"
about 170m shares outstanding. If your 3M volume is correct, that's about 2% daily... the rest I leave it to you..
whoever thinks hedge funds can't keep a stock price down is very naïve. For Metro specifically it would be quite easy given the low volumes. I suggest you guys mentioning the 10% known start thinking how many other hedge fund might have position below 0.5% that they don't need to be disclosed. (a former hedge fund employee)