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Financial Select Sector SPDR ETF Message Board

  • wsraeb wsraeb Sep 8, 2008 8:18 PM Flag

    End of Day Ralllies?

    Does anyone have an explanation why the XLF goes up huge almost every day in the last 15 minutes of trading? Just like today, up 50 cent at 3:30 pm, then finishes at up 90 cents before 4 pm. Sometimes, the gain triples in the last 15 minutes.

    Does it have something to do with hedge funds? I have tracked this for a wile and seems very consistent. You would think the possibility of bad news in financials outweighs potential good news overnight... so why the rush at end of day to push up prices?

    Any insight is welcome.

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    • First let me say: I haven't a clue.

      I don't know how long you've followed the markets, but I've been in the casino for about 12 years. I have seen things this year that I have never seen or even read about. And the rumors, usual fairly common before, now are insane. Just today, look at UAUA. Looks like a bankruptcy rumor there on top of some vicious forced selling. One thing that did make sense was that the reversal from the gap up was funds adjusting for being long the GSE's common and preferred. They had margin calls, so they had to sell other securities to meet them. As soon as that tapered off, we almost made it back to the highs of the day. You may know it already, but the majority of the volume are program trades. You never know when they will kick in, but all of a sudden volume spikes and stocks take off in one direction or another. There has been a lot of liquidation the last 6 trading days, so what you see may be a rebound after funds are finished selling spurred along by shorts afraid of getting mugged again. Anyone?

    • I have no idea but I wish you would have posted this a couple days ago.

 
XLF
22.67+0.28(+1.24%)Sep 1 4:00 PMEDT