The Algo Storm on the US side todaySO many disgruntled posts here. Well, don't get your panties all a bunch ladies.
If you ran 2 charts today side by side, SU on the NYSE, and SU on the TSX, you would have witnessed every slight rally sold off and smashed by the algos on the US side, on each runup. These drops were not initiated on the Canadian side. Once the price was beat down and the US algo selling stopped, it was the Canadian buyers that stepped in and brought the price up before it was smashed down again. Rinse and repeat till close.
US volume today was massive, twice it's average, at 15m vs 7m.
Canadian volume was good, but not nearly as high, 12m vs 9.5m.
Remember, this algo storm will pass once the US institutional investor(s) finishes picking up his marbles and goes home. Once they exit, the tunes start and the party is back on. Today's close was a gift.
I must admit, seeing this kind of algo action today, reminded me of another time, and I'm a bit worried about my March calls. There is a large total open interest, and a lot are now heavily in the money. The counterparties might want to smash the share price so they don't have to pay out on expiry. Seen that movie before, so I'm watching how it will play out.
Other than that, just relax and hang out for the ride. Remember, WTI hit $93 today, with WCS well over $100CDN. Focus on that, and what those kinds of prices will do to future Suncor cash flows.
Russian oil is having trouble finding buyers, as nobody wants to be caught holding a tanker full of $100m of oil they can't unload due to possible sanctions. Nothing will happen until after the Olympics anyway, so prices should stay elevated.
So please refrain the usual complaints about useless management causing a drop in share price as they didn't raise the dividend or some other fault. Although we are looking at stellar future guidance, reported earnings were indeed a slight miss in Q4 due to some one time operational mishaps, and the closure due to the unfortunate fatality incident of the haul truck operator that fell asleep. That miss may have caused some to sell.
Stocks go up and down, so don't feel the need to find someone to blame. Next you might blame the poor guy riding by on his bicycle that you think should be driving an SUV and burning gasoline instead.
Have a good weekend all.