RE: A TIP or 2"Half an hour before closing time, the volume went nuts and people buying 10,000 to 25,000 shares. It was moving up. At the bell, a big boy sold 20,000 for .6 cents less than the asking price of $1.09. I knew it might happen, as I have observed this with the same stock. So now, rookies would look at the closing price of a loss of .6 cents. I bet you it will not open at $1.01 to-morrow.
Hmmmm.....not sure if you know this or not, but HNU itself doesn't mean anything, nort does wathcing the volumes on it......HNU tracks nat gas...if nat gas goes up on a certain day, so wil HNU....and vice versa.
Secondly, did you notice when HNU started to go up? just after 2:30 PM, which is what time the NYMEX NG market closes....so all trading done after 2:30 is technically after hours......Did you happen to notice that the entire trading from 2:30-4:30, the volume on actual nat gas was almost nil....
What this means is that although HNU will track the price of nat gas, and did, the rise at the end of the day meant nothing, as HNU tracks price only, however the price of NG was irrelevent due to the low volume....I have noticed lately that NG almost ALWAYS goes up after 2:30 lately........the movement is irrelevent for NG itself and has no bearing on what it will do tommorow (as we can see now, NG is at $5.04 right now) and is probably traders covering their short positions before the next day......but from an HNU standpoint, it still moves up regardless of the volume pushing NG up.
What this has done is presented an interesting play, one that I only tried for the first time yesterday afternoon, after watching NG for over a week, and it worked........buy HNU at 2:30, sell just before the close.
As I said, I tried it for the first time yesterday, but I've been watching it every day for a week, and it would have worked in 6 of the past 7 trading sessions.
It's not a big movement, but it can usually net you 1-2% based on the days I've seen trading.
Note, I haven't been wathcing this movement for a long enough time to know the true probabilities of this happeneing.....and I won't be playing it again until I do some more studying.....
but it's something you may want to keep in mind over the next few days, see how it behaves.