THE SMELL OF MONEYIt's very (ok, very VERY) interesting to follow the trading this week. FIrst thing of note is the agressive Institutional buying via House 1. Just looking at the trades for this week, you 'll notice House 1 WAY out in front on the buying compared to 2nd and 3rd place. Again, the following are the net buying (highlighted) for just this Monday, Tuesday, so far Wednesday.
| House Positions for C:BBD.B from 20220829 to 20220831 |
| 1 Anonymous | 492,645 | 15,841,677 | 32.156 | 349,782 | 11,207,464 | 32.041 | 142,863 | -4,634,213 |
| 85 Scotia | 58,551 | 1,880,855 | 32.123 | 31,073 | 986,356 | 31.743 | 27,478 | -894,499 |
| 79 CIBC | 261,027 | 8,375,771 | 32.088 | 242,274 | 7,787,229 | 32.142 | 18,753 | -588,542 |
This kind of buying bodes extremely well for the stock. First of all, the Funds have the appetitite and the ability to move the stock. Secondly, these are typically shares being taken off the table. Personally, I think there will be a LOT of Fund buying coming in to Bombardier, and we are only at the very beginning of seeing this buying.
Also of note is the traders now starting to show their interest in the stock. I mentioned yesterday that I thought they would become more emboldened to buy, given how well the stock did in the midst of a 1500 point drop. Well sure enough, they are back today for more. What's nice here is that as the stock moves towards the break point out of consolidation, more and more traders will come in to the stock. Yes, they effectiely create a self-fullfilling prophecy. But the actions of traders are not what gives a stock it's staying power. Traders just dance around and add spice to the given move. The real move however is with investors, and by all indications, there is a lot of room here for investors (Funds and retail) to take positions.
Whether it's Funds starting to buy, or traders doing their dance, they all smell money. And that smell, especially when the upside potential is large as it is with Bombardier, is intoxicating. This smell of money is potent right now for both traders and investors, which creates the strength of the upside.
Next up will be the "official" break and run beyond the current consolidation. Happy to just sit back and watch the trades go through on this, and let the 2nd half of this extended run play out in the short term.
Enjoy.