"As for the inevitable post-news price drop rebound, well that's how this crazy market works. Did you see how the Novavax share price dropped after they got the EUA?"
I'm glad you raised this matter of the post news price drop - it triggered in me something I've long wanted to post about.
With the long drawn out horror of being caught in the perfect storm of a Covid + War driven inflation crisis and central bank floundering especially here in Oz, the never ending FDA missteps, the unfathomable treachery of big Pharma, the denial of our place in the world of approved life saving therapies, the mounting toll of our dwindling funds again, and the share price falling way way below $1.00 to an absurd level - only Blind Freddie could fail to see that a certain turnaround would be eventually coming when some positive signals confirm a way forward - even if just a beginning.
My favourite word in investing is "conviction". Its in my Investment Strategy for my Tax Statement in every single paragraph.!
From the opening bell investors sprang out of the gates with roughly $2M to buy MSB on the Rexlemestrocel-L announcement thus pushing the shares to a high of 97c. Not a huge amount of money I admit but it suits my point. This is conviction buying (of course they could have bought yesterday) but for whatever reason of judgement they decided against waiting longer to buy or top up, instead of live with regret.
Next, about midday, 4 hours of rot starts.....I call it the day trader hours where the price fades a long way down in a dog's breakfast of absurdly small orders. I am not trying to write a thesis here but most of us have seen this thousands of times. There is no volume worth speaking about and little "market makers", (encouraged by all exchanges - a dollar is a dollar) play tiddly winks with retail customers who ought to be at the casino or just refuse to work. And presto our closing price drops - which might suit some people I suspect
Here is my point.
OUR EXCHANGES IS OPEN FAR TOO LONG.All the necessary time for portfolio balancing could easily be done in three hours from 9 - 12. And definitely NO late trading.
Imagine the cost savings of reduced operations in exchange/broking/ASX circles - where all trade is done by computers anyway.
The geniuses in Wall Street are to blame for all that anyway, resulting in tens of thousands of staff being laid off many years ago.
The big US TV platforms still show the old grey haired floor trader guy staring up at the screens like he's all worried - but it's all BS.
If you watch the New York market like I do for a couple of hours just because I like to you will recognise that serious market players don't need the ASX to open at 6.00am just for the sake of un-interrupted trading into our time zone? So then why do we need this charade of trading all afternoon long just to satisfy a few lazy market makers and day traders - let them get up early and place their bets in the morning session, or get a real job like everyone else? By the way people work better when they are on a time limit.
I rest my case.
(20min delay)