I doubt the index funds would just dump all stock on index exit, logic would dictate they would unwind their position in an orderly fashion so as to maximize return (and take advantage of block trades where possible). As such I would expect they would consistently feed the sell side over the course of multiple weeks to unload their holdings. Therefore in logic it makes sense that they would still be selling into strength or positive announcements. They may not have the luxury of waiting around for greater sp appreciation to offload.
An opposite of this can be seen in the likes of yancoal, who has been added to asx200. There has been no massive buying or jump in share price but if you take a look at trade history it's a consistent steady stream of buying and green days (even on market red days). Appears to be orderly accumulation so as to avoid overpaying or running up the sp too quickly.
Then on the opposite side of the STX selling we have shorts, genuine buyers and market makers/bots. I think there is perhaps low genuine buyer buying demand as they may simply be waiting to see the flow test results, this may also be influencing the shorts given historical flow results. Despite early indications, the next lot of flow results may be negative, in which case the shorts will be able to offload much lower or continue to hold their shorts and cap the sp much lower. If the flow results are good the shorts can no doubt use the index fund selling (and profit taking traders) to adsorb some of upward momentum.
Unfortunately as much as I wish we could, I think at this stage we can't really expect significant upward movement based on announcements like today's.
Broker data would be handy if anyone has access to it,
GLTA
STX Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
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