Post Conversion Volume

A rough approximation of daily $ traded value (closing price x volume) and, by extension, percentage of market cap traded shows (though its been hard to miss) that volume is up substantially post conversion. With volume at 70k shares at mid day and the price bouncing off ATH, today will be a another big one.

Vol and Vol

px and volume 11-1-18

Volume and volatility.  There won’t be much substance in this post.  It is meant to take stock of recent price action.  Maybe someday we’ll look back at today as “simpler times”.

Bloomberg and Yahoo both report today’s volume at 69k shares which is ~5x a normal day’s volume and ~3x of that of a heavy day.  If we approximate a VWAP of $700 today, it is estimated that $48MM in market value of shares traded today which represents just under 1% of the closing market cap.  For comparison, AMZN had 1.2% in turnover.  The takeaway is that it takes extremely heavy (relative) volume to come close to a “typical day” in a large cap stock.

What’s driving it all?  Your guess is as good as mine.  The 10-Q isn’t out yet.  That doc presumably contains material non-public information so there is a chance the Trust isn’t back to buying yet.

The upside to heavy sell off today is that someone or multiple someones all put their money with their mouth is and bought heavy size today.

It’s tempting to wonder if the name is being pushed around by a sophisticated trading desk taking advantage TPL’s typical gaps in the offer and bid stacks.  Wouldn’t be hard for them to take out many, many stop losses along the way.

Either that or HK is selling…   There, I said it.


Source: Nasdaq