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There are some unusual trading patterns going on with AOL. I don't think this is normal consolidation, we are not seeing the volatility and the randomness that goes with that. If anything, the price movement has been too disciplined, with erratic movements after hours, and slow swings during trading hours. Here is a thought. Large fund families have mid-cap funds that need to sell AOL, and large and index funds that need to buy, or just want to buy. The funds selling do not want to drive the price down on themselves, and the funds buying do not want to drive the price up. So they time their orders to balance each other out, thus maintaining equilibrium, save for days like this when the entire market is up. But even today, except for the gap up the price held very steady, until the end when it went down, maybe larger selling to allow the other funds to buy in after hours. This kind of trading pattern is just not indicative of little guys, and once it is done, we might resume more normal trading. I suppose I would trade a lot of volatility for slower movements and an overall up trend, but it bothers me anytime I sense there is somthing unusual happening and the average investor is not privy to what is going on. This is JMHO, which may be all wet. Comments? |
