Trading Analysis - 27th Sept 2018

Alfacomp

27 September 2018

12:01PM


A thankfully quieter day than the previous few. Some initial selling provoking a drop which encouraged weaker hands to sell a total of about 500K at below 30p. The trading position returned reasonably promptly to above 30p demonstrating robust support at that level. 

A hold for a few days around this level may encourage the warrant holders to stop holding out, if they had been hoping for a higher rise. It is good to have a few retraces along the way to shake out the less committed. It is just one of those things that you get used to after a while.

End of Day


The apparent strong selling earlier on disappeared once all the delayed reports came through. Naughty, naughty - looks like people were hoodwinked into selling after the drop at 9am precisely because they were not told about the 445,000 Buy that came through at 8:46am. This was not your classic tree-shake - more market misdirection, plain and simple.

Anyone who sold just after 9am should try contacting their brokers to ask for their shares back. After that has failed they should reflect on their reasoning for selling at this point, having been so comprehensively fooled by the market makers. Again at 11:16 - another buy, this time of 450,000 shares - no effect on the SP and this time the market makers had to dip into their big hat to pull out 2x250K blocks of shares. Whether these are from warrants or a large shareholder who isn't aware or doesn't care what is going on, I cannot tell.

What I can tell is that the Market Makers won today by old-fashioned deception. They got people to sell shares that they would not otherwise have done, at prices lower than they should have been.

At the end of the day though it may not have helped the MMs further build the long position that was started last friday, as at the end of trading PI's had bought over 500,000 more shares than they had sold. We shall see if tomorrow PI's are spooked as easily as some may have been today.

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