Rumour a few days ago that a US dealer was shorting 3 UK banks. The price of Lloyds is below its value so it could be that he is focused on lloyds. I’m no expert on shorting but presumably at some point the shorter buys back and timing is everything and therefore at some point as the buying raises the price and the dealer needs to cover all the sales there could be a significant bounce which the shorter will sell into but if the sentiment is to buy the dealer could lose badly.
What is the authority/source of the rumour?
He has been short 2 UK banks for quite some while.
So he has added a third.
Yes, as a shorter he will need to buy back/close at some time but the pro shorters can do it in such a way as to not force the sp higher.
They are very skilled traders with far more facilities/information available to them than the average investors, many of whom rely on hope.
I think that’s were the algorithm comes in. A human makes the decision, but, the execution is done by a smart order fill algo. These things look for liquidity pools, then they layer orders. You can actually see the absorption at different times of the day, if, you have the right software
This is yesterday’s ES’s you can see the absorption of sells at 2610 (in front of the the liquidity pools at 2602, coloured red). Again when it reaches 2644 you see large buys, but, again these buys are being absorped by heavy selling.
That’s some pretty advanced looking software MacB, looks like you must know trading pretty well inside out.
It’s called Bookmap. It’s designed to show a current and historical representation of bids and offers on the DOM (orderbook). You see where the institutional size is lying (depicted in the dark red colours). You also see if orders are pulled. If you get heaving selling into a liquidity pool and the liquidity keeps refreshing, then you wait for a seller exhaustion and get long. The guys who designed this specialised in HFT trading. For me I never just trade off this, I have stalkzones, Previous days highs and lows, HVNs and $TICK. Ideally you get three components in alignment, then you execute.
Interesting Mac thanks for sharing that. It just shows how these guys can manipulate the prices to their advantage.
Hopefully this thread will keep going
Then one day I have my day in the sun here for sure
In the meantime BrownAdder, I watching with amusement, Banks shares just move in Cycles so I want to buy more near the bottom if I can I will post trade, I really want the massive Dividend here early next year
Hope you keep up with the News Regardless.
Source Google > IMF warns storm clouds are gathering for next financial crisis
If youre following news then youre late.
Nothing wrong with Lloyds Banking Group and still have no requests re-investing back here
How lovely for me to say
She be here tomorrow and here in 10 years time
Its called a market shares go down and shares go back up again
Honestly I am happy broadmoor1 is winning today making £££ next year or two it be my turn again as long as I chill and stay cool … paper loses today always turn around with Solid FTSE 100 Dividend paying stocks IMHO
Swings and Roundabouts folks that’s all
Could see a big swing if second referendum comes forward. Looking increasingly likely today unless a no deal Brexit scenario plays out. Can’t see TM being able to pull off a huge swing vote in Parliament either for the current deal, or taking the UK out on a hard Brexit…so can see the shares dropping sub 50p next few weeks as everything moves forward. Safe to say it’ll be an interesting 12-15 weeks in share price movement! Views for discussion purposes only.
You see china growth was poor too.
She lying. You need another woman.
An interesting and nicely put post, thanks.
If there is a 2nd referendum,can see the possibility of LLOY sp rising.
2 other scenarios I can also see.
1 Maybe minimal reaction, the big players will probably be aware before many others so might be priced in before made public.
- Possibly an initial spike which does not last, after all a 2nd referendum would just add to market uncertainty. Tired old saying but markets do not like uncertainty.
Yes a drop sub 50p feasible, last week on 2 different days it dropped sub 52 intraday, later recovering.
A bad market day could possibly see a drop sub 50.
As to the next several weeks being interesting in sp movement, yep 100 % on that.
The market volatility is going to continue for some while yet.
LLOYDS is now in complete irrational territory where no accounting or economics applies - follow your hunch is where its stuck.
I personally dont see it will fall any futher “significantly” for whole host of same reasons which everyone has mentioned.
Anything near 50p is a very good buy specially with dividends.
10%+ excluding Divi
To me this is time to buy LLOY