Timmins Gold Corp T.TMM

GDXJ Rebalancing Today

[davgro]

The GDXJ Junior Gold Miners ETF is being rebalanced today. Based on the June 12th release of the GDXJ Index Review the weighting for TMM will increase in the GDXJ from the current 0.64% of Net Assets to 0.80% of Net Assets.

The quarterly rebalancing of the GDXJ is normally done with Market on Close (MOC) orders. I calculate that Van Eck will need to purchase close to 4M shares of TMM today as part of the rebalancing.

There should be a large buy imbalance on the MOC orders. If there is not sufficient offsetting liquidity we could see a share price spike on the close as we saw when Morgan Stanley recently placed a 3M share MOC order on June 5th.

Check the TMX's Market on Close Imbalances when they are posted today at 3:40 PM EST to see the size of buy imbalance.

https://www.tmxmoney.com/en/moc/Moc.html

[fb454]

Thanks for the info. I`ll be watching.

[davgro]

Looks like the TMM MOC imbalance is 1.2M on the sell side. We could see some downward pressure on the  stock price at the close if there is no offsetting buy orders. Should make for an interesting close.

[davgro]

Wild finish today.  Share price hit 0.83 in last minute of trading then showed it closed at 0.80. Closing price was changed to 0.75 at 4:10 PM after all the market on close orders were filled. Got to love quarterly index rebalancing days for their volatility !!

[fb454]

Yes. Sure is. You can use the volatility if your quick. Thanks again for the info.