Trading Analysis - 6th Sept 2018

Alfacomp

6 September 2018

Following this morning's analysis of yesterday, wednesday's trading I show the analysis for today:


On the surface of it this looks very much more well-behaved, but looks can be deceiving as I will discuss below.. The total trading volume was 2.4M, not tiny compared with 4.4M yesterday and 3.6M the day before.

There were a quite a few 50K and 100K trades today which have been disclosed as T20 renewals - so no nett change either way there. 

There appears to be no reason for the drop in Bid around 8:15am, certainly there is no evidence in the nett trading level of any need to respond to market sells by doing this - hence just another example of the Market Makers walking the price down 1) because they can and 2) because they sold 1.2M more shares yesterday to PI's than they bought from them. Those selling back to MMs now need to practise their deep breathing exercises, for they need to show a little patience.

Ditto around 4pm - the trade at 22.0 which seems to yield the drop in Ask is for an insignificant 4,000 shares. Again there is no reason to drop the price at this point. Buyers said 'thanks very much' and pushed the trading position to the highest point it had been all day, despite the headline closing prices apparently showing a drop in SP. This is not so and disguises the fact that Market Makers now need to find 1.4M shares.

 

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