Clarification and update on VWAP Sorry if my post on the VWAP was in any way misleading. In particular, in saying that ES can't
sell, it was meant in a practical sense. Of course he can sell. It's just that the whole world would know if it was in the open market and in no time there would be a collapse in bids and his ability to
liquidate at any where close to break even (my estimate about 20 cents) would vanish. His liquidity
event is more likely in a buy out from a major. (but not for a while). As for the VWAP, today is shaping up to be a perfect example. Nominal price so far slid to a low of .425 when the major buyers simply withdrew bids to draw out stock. Volume was light on the way down, it drew out sellers above the market as it always does and wham they took out close to 1.0 million shares all
the way up to .465. Very clever but not an unheard of tactic. VWAP is slightly lower (than yesterday) at .449 which is nice for the big buyers but they are finding it increasingly difficult to get
large orders filled. We should all keep in mind that in spite of getting in relatively early at 13 cents, ES has also bought more than 10 million shares in the market this year at prices as high as 40 and privately at 42 even before the most recent PR. And I repeat...shares he can't practically sell. I am long.
GLTA