Just my views on the ASX200. Personally I like to study the market and how it works, gyrates, offers and takes away. I have learnt a lot but am a mere student of the industry. Yes we all know that certain Institutional Investment firms can only invest and trade within the ASX200 because of their charter and agreement with their investors. Therefore a strong entry is made once the stock is entered into the 200. I’ve learnt recently that many of these Instos have experienced dedicated teams to manage these new acquisitions in relation to risk, sector positioning and most importantly, how it’s MC rose to the status of ASX200 inclusion. (I took that to mean, was it pumped up on fluff ((a certain stock beginning in I comes to mind)) or was it organic growth and development). The last point was expressed as the most important as that will determine how the “position” is managed. The other thing I recently learnt that I was unaware of was that yes these Instos were only able to take positions once the stock entered the 200 but that didn’t mean that they had to exit immediately when the stock exited the 200. The exit was to be “managed” over a non determined time period. In my opinion this point leads directly to the closing of short positions.
Just a bit of waffle.
Cheers.
CU6 Price at posting:
$2.83 Sentiment: None Disclosure: Not Held
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