It's the composition of the float, its the float, its the float. So much of the float is locked up already and it doesn't appear that there are too many interested sellers at this level for buyers to make a deal outside of the market. If you can't make a deal for a big block outside of the market, you're forced to buy your block at the market, with very little participation besides your order. Subsequently, you are going to drive the price up on yourself, like what happened early this week. Ideally, a big buyer doesn't desire to "bid against himself", but without retail participation and without a deal elsewhere, he/she has no choice. So you have buyers, but they aren't participating to the degree they would like to because they are going to likely bid against themself, hence, very little volume. Simply not enough shares to go around. It can be a very bad thing or a very good thing depending on the day. If you do have a big seller at the market and no big buyer to counter the order through completion, well, the stock is going to dramatically underperform. And the same holds true on the buyer's side with an outperformance. With this size float and this type of participation at the institutional level and retail level, it simply isn't enough, a stock split would be warranted imo, but only likely to happen in the $60 price range. With that said, "it's the composition of the float that makes the stock so volatile and the volume so anemic at times.
sethy, that is the cornyest ,shoot from the hip, guessing answer ive ever read. if you people need answers, he isnt the one to ask. consult the riccaro money flow quotient. Like HELLO!!!!! Volume is a component of money flows , is it not? you people crack me up.
Thank you Sir. I was, as always, cautious with someone with only a few posts, but your
sincerity seemed like a good bet. One can just tell. The triangle is what I call "a coiled spring." And, as you noted, the direction is unknown. Volume busting the high and low will tell the tale. Thank you again because as the definition below indicates, some incorrectly assume that the direction of price before the triangle/consolidation is NOT determative of which way it breaks. Thanks again and for others, here:
"Symmetrical Triangle Definition
A symmetrical triangle is the most common triangle chart pattern. It is comprised of price fluctuations where each swing high or swing low is smaller than its predecessor. This coiling price movement creates a structure of a symmetrical triangle. As a symmetrical triangle is forming, trading activity diminishes along the way until the apex of the triangle is reached.
Many technicians believe that if a stock is rallying prior to a symmetrical triangle, the stock will eventually breakout to the upside. Conversely if a stock is falling prior to a symmetrical triangle forming, the stock should continue lower. Both of these assumptions are wrong. Symmetrical triangles provide little, if any indication as to which direction the stock will ultimately breakout. Remember from the above definition, there is a lack of volume and price movement which creates a coiling pattern, therefore it is simply impossible to assess which way a symmetrical triangle will inevitably breakout."
Sentiment: Strong Buy