SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Abnormal Volume and Block Trades
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Essam Hamza who wrote (1846)6/7/1997 12:51:00 AM
From: Stox   of 2340
 
Hi Dr. Hamza. I would like to start a discussion about the original theme of this thread. Like most I have had a feeling in the back of my mind that block trades frequently signal the start of some big positive price movement. I have never personally profited from this theory and would like to pursue it further. Essam, is there any essays or literature that supports this?

Here is what I did:

I looked at 24 block trades on the VSE and ASE during the week of May 26-30, 1997. I ignored a Bk of Montreal block trade as well as any which had less than 100,000 shares or less than $50,000 in value.

I recorded the closing price on the day of the block trade and the trading range during the subsequent 5 trading days (i.e. high and low). I calculated a "MAX%" figure which shows the hypothetical maximum return you could obtain if you were lucky enough to buy at the weeks low and sell at the weeks high. Of course this is virtually impossible and often totally impossible (i.e. the weekly high on the first day and the low on the last day).

If block trades are really the signal for impending action, volume and price movement you would expect the MAX% to be well over 40% to make trading these kind of stocks worthwile.

What do you think the results were based on this week's trading?
Let's open the floor to discussion and I will post the results later.

el
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News