Trading update – 13th Nov 2017

Alfacomp

14 November 2017

Following on immediately from the afternoon short attack of the Friday the 10th November

Nervy, you might describe it.

Initially a couple of smallish buys kicked the Bid and Ask up to show an apparent +4% SP rise. This did not attract any significant quantities of traders and the recovery to pre-short levels stalled at that point.

A further 100K sell at 9:21AM seemed to be tolerated by the market makers, but when this repeated at 10:31AM they did respond by dropping the Bid. There was no resultant selling but a few more PIs (fatbanker, skibba) were able to buy at prices as low as 9.275p, even though the Bid had returned to 9.25p at that point. A large (192K) Sell then occurred just before noon, seemingly priced below the Bid level at the time of 9.25p – so perhaps this was a genuine PI Sell.

At 12:44:17 a PI sold 100K at 9.25p in order to recycle a T20 and this caused the Bid to drop from 9.25p to 9p. Interestingly the report of this trade was delayed by 10 seconds so that it appeared to have taken place at the same time as a PI Buy at 9.375p  – things seemed quiet until ten past one when a PI was able to buy at the all-day-low-buy-price of 9.225p (congratulations Knuttie). 45 minutes later though the Bid had dropped again back down to 8.75p but without any obvious justification – it may be that we see further delayed reports of shorting Sells at this point.

Evidently by 2pm the MM’s deep breathing exercises had worked and the Bid and Ask had returned to their earlier day highs. An uncrossing trade at 9.75p was thrown in, for reasons that may become apparent later in the week. and things remained stable for three quarters of an hour before a PI sell of 100K , followed closely by another, unknown, Sell of 100K kicked the MMs back into shorting avoidance mode, with the Bid dropping all the way back down to 8.75p. Again nothing seemed to happen for 20 minutes, when a 34K Sell popped up at 8.875p – again we might expect to see some delayed trades appearing in this period to explain how the price on sale dropped so heavily from 9.26p to 8.875p in this period.

BMNfan’s 162K Bed-ISA pair turned up on the Bid at 3:24pm and the afternoon continued to the close with buyers paying 9.3-9.375p. Another uncrossing trade (this time only 14K quantity) turned up at 9.75p just after hours – making the SP close at 9.75p – frankly illogical whilst the Ask was only 9.5p and Bid 8.875p (mid 9.125p).

Daily volume was 2.7M with 167K more Sells than Buys – essentially in balance, but with the short extended by perhaps 300K.

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