SGX - New Short Sell Rule and STI index
NEW SHORT SELL RULE
Was sharing with colleague the cool new feature of our exchange..a daily report of our reported shorts order.
Go to Members and professionals -> Marking of sell orders
Yesterday was a short feast with WE holdings leading 80million volume of shorts.
With a total volume of 400m, and assuming the shortists had covered back. This mean close to a 50% of volume was created by shorts alone with cover back.
Overdone?
Also, caught this amazing phenomenon during the start of trading hour.
WE Holdings opened low today as compared to yesterday close.
Many retailers might think is an easy way down as many feel that the pennies seasons is done. However, the SM proved them wrong.
Just 17 seconds into the trading hour, a buying up order close to 10 million worth of shares of WE Holdings is done at 0.056.
After seeing that huge order, I know that the odds are against the short term shortists.
True enough, WE holdings then went to a high of 0.07 and now has fallen back to 0.062.
From this operation, the SM has manage to trap both shortists in the beginning and the longists who went long after that. Kudos to them!
As I was telling my colleague, it was easier to go long after seeing the huge buy but it is difficult to notice/spot the stealth distribution and tricky to short after the push up.
ON THE STI INDEX
With the inclusion of ThaiBev, with market cap of around 15B, (abt the same as Kepcorp) we should see ThaiBev forming 5% of the STI component. Assuming a short-mid term target of 80 cents of ThaiBev, this will roughly translate to about 1.65% an increase of the current index or 55 points..
PS : This is just a rough calculation....
Was sharing with colleague the cool new feature of our exchange..a daily report of our reported shorts order.
Go to Members and professionals -> Marking of sell orders
Yesterday was a short feast with WE holdings leading 80million volume of shorts.
With a total volume of 400m, and assuming the shortists had covered back. This mean close to a 50% of volume was created by shorts alone with cover back.
Overdone?
Also, caught this amazing phenomenon during the start of trading hour.
WE Holdings opened low today as compared to yesterday close.
Many retailers might think is an easy way down as many feel that the pennies seasons is done. However, the SM proved them wrong.
Just 17 seconds into the trading hour, a buying up order close to 10 million worth of shares of WE Holdings is done at 0.056.
After seeing that huge order, I know that the odds are against the short term shortists.
True enough, WE holdings then went to a high of 0.07 and now has fallen back to 0.062.
From this operation, the SM has manage to trap both shortists in the beginning and the longists who went long after that. Kudos to them!
As I was telling my colleague, it was easier to go long after seeing the huge buy but it is difficult to notice/spot the stealth distribution and tricky to short after the push up.
ON THE STI INDEX
With the inclusion of ThaiBev, with market cap of around 15B, (abt the same as Kepcorp) we should see ThaiBev forming 5% of the STI component. Assuming a short-mid term target of 80 cents of ThaiBev, this will roughly translate to about 1.65% an increase of the current index or 55 points..
PS : This is just a rough calculation....
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