The market is up big today and there is a lot of trading volume in NNA. Lots of shares moving but no increase in share price. So, are shares being distributed, or is there just a lot of interest in NNA at this price level. Whats it all mean?
Today, Dec 6,2012 the shipping sector is widely down with NNA leading the pack. Two hours from the end of trading, NNA is down a whopping 5.26% for the day. We seem to be on our way to retesting the earlier low of about $2.25 This is an unusual movement for NNA. But an opportunity looming if one has dry powder.
I see your point about the recent move in NM...up strongly over the last three days I think. But my guess is that one or more individuals bought all they could of NM and saw they were moving the price too much. They decided to instead to move some of their buying pressure into NNA, not understanding that NNA is even more difficult to move into without moving the price more than desired.
Tiny amounts of shares traded for most of the past two days. Then 30 thousand shares bought in the last 30 min today. What happened? Was it just some rube placing a market order and overwhelming the shares offered? If so, much of what he bought came from the market maker who was happy to accommodate this "rush order". The shares can be easily bought back later for less. Am I missing some news here?
Big difference in the trading pattern from yesterday. Friday and Monday (23rd & 26th) there was big volume changing hands. And Monday there was price softness as NNA fell 8 cents. Today its the reverse. Tiny volume and up 1.2%. It makes me think someone is moving a fair sized position in bits and pieces. But they are exiting their position in a smart way. They are not dumping shares when NNA was bumping the top of its recent range ($2.90) Demand falls off up there. But as as it comes back toward the bottom of its range, more buying interest is stirred up and this trader starts feeding in shares. Today, that came to a halt so that the stock could recover. Perhaps with his help...small trades where he may even be the buyer also.
I'm expecting more of this same pattern.
It will be difficult for NNA to rise much the rest of the year due to tax loss selling. Pull up a 1 year chart on Yahoo as of now. The first 3 months on that chart may well repeat in the next 3 months.
It's never been so easy to pickup NNA shares at the bid. I keep averaging down with small limit orders at or slightly above the bid. I usually have to wait considerable time to execute. Today they hit me almost immediately. I think (or hope) you are right about year-end tax selling. Looks like I'll be accumulating more at lower prices.