"Splitting orders into small parcels creates large numbers of opportunities to continuously impact prices" No, it reduces price and volume impact. What does a VWAP sell order look like? How else would a large holder sell stock? Smash it down to 0?
Using CDU is a terrible example. Guess what, it went to 0. Insto holders saw the writing on the wall and got out. Just as their buying pushed prices up, their selling pushed prices down.
Looking at downticks/upticks is a good way to identify insto flow. It not manipulation. Its just algos trying to minimize price impact for big funds.
Using a bunch of lith stocks to demonstrate further manipulation is hilarious. Whats been happening to the underlying LiO2 price? Should oil stocks fall when oil falls too?
Its unfortunate the author has brilliantly identified how to spot institutional flow but drawn very incorrect conclusions.
