Read on Twitter
Think about this logically
Many traders are listing & undercutting bc there’s minimal individual risk & they “might get lucky” with a market sell
Delisting no longer increases the buy price as it did before
Result = buy price & the bid floor are continuously reducing
1/9
Many traders are listing & undercutting bc there’s minimal individual risk & they “might get lucky” with a market sell
Delisting no longer increases the buy price as it did before
Result = buy price & the bid floor are continuously reducing
1/9
Passive traders are ignoring the platform
Panicking traders are ISing
Smart traders are bidding low
Active traders are IS at prices they wouldn’t have previously, to get back on lower
Common denominator = no one market buying & no force working against the negative pressure
2/9
Panicking traders are ISing
Smart traders are bidding low
Active traders are IS at prices they wouldn’t have previously, to get back on lower
Common denominator = no one market buying & no force working against the negative pressure
2/9
This CAN be fixed without the magical pot of liquidity gold
FI need to swallow their pride re sell offers and do one of the following
Adopt the “snapback” idea FIG and Headhunter explained & increase the VWAP significantly
or
Scrap sell offers & revert to the sell queue
3/9
FI need to swallow their pride re sell offers and do one of the following
Adopt the “snapback” idea FIG and Headhunter explained & increase the VWAP significantly
or
Scrap sell offers & revert to the sell queue
3/9
The bid zone/floor should be reduced to 5% under the buy price to encourage market buys
For example
Traders would buy Ronaldo at £3 on a goal, if the maximum bid price was £2.85
They’d buy Kane at £5, if the maximum bid was £4.75
etc.
4/9
For example
Traders would buy Ronaldo at £3 on a goal, if the maximum bid price was £2.85
They’d buy Kane at £5, if the maximum bid was £4.75
etc.
4/9
Psychology is a huge factor here
Think of the IS prices pre sell offers going live
Think of the amount of market buys prior to the first div announcement
We’ll all happily pay more when sentiment is positive, because the yields are so good
5/9
Think of the IS prices pre sell offers going live
Think of the amount of market buys prior to the first div announcement
We’ll all happily pay more when sentiment is positive, because the yields are so good
5/9
Yes, arguably a backwards step, but only temporary. FI can try full OB again when NASDAQ are ready, market makers are secured and sentiment higher
FI need to stop playing this game of “let’s pretend we’re a proper market”, we’re not
6/9
FI need to stop playing this game of “let’s pretend we’re a proper market”, we’re not
6/9
The “soft money” talked about isn’t a defined amount, “hard money” can and is becoming “soft money” as more and more traders become disengaged and fearful.
The quicker FI act, the quicker the recovery
7/9
The quicker FI act, the quicker the recovery
7/9
Claims to “stop listing” by the community will fall on deaf ears.
Media monitor, depth, sessions and data centres are all niceties that will do very little whilst FI persist with broken mechanics
8/9
Media monitor, depth, sessions and data centres are all niceties that will do very little whilst FI persist with broken mechanics
8/9
The big positive - this situation is recoverable, and without the need for a £50m injection
The recovery will be incredible, so hold firm and don’t panic
@FootballIndex – you need to act
#footballindex
9/9
The recovery will be incredible, so hold firm and don’t panic
@FootballIndex – you need to act
#footballindex
9/9
