Re market action Wednesday?ThursdayStaghorn, perhaps this may interest you.
On Wednesday I decided to buy 2000 shares of MBA. At the time, the bid/offer was .66/.67 so I placed a limit order for 2000 @.67 and the order was promptly filled. You can imagine my surprise when I checked in later in the day to see MBA at .62. This is a stock that hardly turns a hair most days yet the day I decide to buy, it drops 12%.... from my purchase at the day’s high. Talk about stumbling into the bank at the time of a robbery!
Another curious thing: the reported high was .66, NOT the .67 that I paid. The transaction went through for that price, that’s what appeared on the fill, but no record of .67 as the day’s high, at least with RBC online.
My best guess: Somebody wanted to unload a block of shares and called around. A buyer was found at a discount to the going bid/ask and then the stops were run to the agreed-upon price to satisfy the transaction.
Naturally there is some dismay and confusion when a stock price drops 10-12% in a single whack; no doubt, in the ensuing mayhem, the buyer of the block takes full advantage by vacuuming up any additional shares that might come available. Call that opportunism.
To summarize: on Wednesday the earth opens and swallows; on Thursday it closes, but not before returning everything back to its rightful place. Even the birds resume their singing… and I’m up .02 cents on the trade.
Question is: will MBA go back to sleep for another month? And where is the high of the day for Wednesday? What would chartists have to say about sloppy data reporting?