Trading patterns really fascinate me. I've found in my experience that if I can pick up on the change in pattern, there's great money to be made. And the nice thing about trading patterns is you can see them...as opposed to having to "hope" for other vehicles to move the shareprice such as news releases etc.
Here's a couple of further observations of the trading patterns on DMW that I find very interesting.
I took a look at the 7 days of trading up to and including the 24th of December which was the last day for tax loss selling. The three biggest sellers by far were:
1) Octagon selling 431,000 shares
2) CT Securities selling 435,300 shares
3) Yorkton selling 427,800 shares
Now not all of these houses sold the same amounts on the same days, but just for curiosity, I figured out the daily average selling of these houses combined over that seven day period. The daily selling average came to just under 185,000 shares/day. (Other houses were net sellers too, but they were so small by comparison. For example, the next BIGGEST seller after Yorkton during that period was Credifinance, selling a whopping net of 20,000 shares!! On the flip side, the biggest buyer during that period was Cannacord, scooping up over 400,000 shares.)
Anyway, I then took a look at today's trades, to see if the average daily sell of 185,000 shares stood the test. NOT EVEN CLOSE!!
In TOTAL, these houses sold only 24,000 shares.
1) Octagon: NONE
2) CT Services: 13,000
3) Yorton: 11,000
Now I know this is only the first day of trading after tax loss selling, but I think it is more than just coincidence that the trading has changed this dramatically. And with the supply side of shares strongly choked off, it's pretty clear which direction the shareprice will go too. :)))
As I said before, it may take a few days, or even 1-2 weeks to see the big buying come back in to DMW. I think some people got pretty rattled by the strength of the tax loss selling and need to "warm up" to the idea that DMW is a great buy at these levels. I've bought into DMW with both a core and trading position. (for me an 80/20 mix)and if this "new trading pattern" confirms itself at all tomorrow (as I suspect it will), I'll buy in more.
Everyone has their tools I guess for making their investment choices, but for me trading patterns speak volumes about what to expect for the shareprice, especially short and medium term :))
Cheers,
Kevin |
