Trading Analysis - 19th Sept 2018

Alfacomp

20 September 2018

End of Day

As has often been the case recently we need to look in more detail at the busy early morning activity:-


 

Despite repeated selling (100K,100K,50K,200K) at the opening the price did not shift, suggesting rather strong demand by MMs for shares - quite possibly to fill the 500K Buy that appeared at 8:10AM. After that things settled down and despite repeated selling the price barely budged.

As the full day chart below shows buying then picked up and the nett surplus of Sells of c. 500K was again converted into a Buys surplus courtesy of the second 250K Buy of the day just after noon.



The nett trading position increased to over 500K by 3:30PM, shortly after which the first of two 500K Sells appeared (marked in green). Each of these Sells was subsequently duplicated in later reporting, following the pattern of the previous day. As then we only count a single one of these duplicates towards the Market Makers nett trading position, believing the second of the pair to be an inter-MM trade (one genuine sell, one transfer MMx->MMy).

There was also an additional late reported duplicate corresponding to the 250K Sell at 9:28:11 on the previous day, Tuesday the 18th. This brings the total of duplicated trades for the 18th to 1.85M, for the 19th we now count 2x500K = 1M - a total now of 2.85M in duplicated pairs, before any further delayed trade reports are received.

This adds to the 1.6M of 'corrective' (i.e. an appropriate amount dropped in from somewhere to meet MMs daily demand) Sells observed on Monday.

If both blocks come from warrant pre-sells then we can ascribe a total of 4.45M to this source just for this week, if just the duplicate pairs, it is 2.85M.


This article only conveys the personal opinion of the author. Whilst every effort is made to ensure the content is accurate, we cannot guarantee the accuracy of the data shown. This article does not constitute professional, financial or investment advice and must not be used as a basis for making investment decisions.

Site content is not authorised by the FCA and you are not safeguarded by the Investor Protection measures of the Financial Services and Markets Act 2000. See our full disclaimer