Disclaimer: The below is my own research and opinions please DYOR. I also am not associated or act for any Institutions. I am an investor who has invested into SYA since last year before the ASX 300 inclusion and see huge promise in SYA. If you want to sell or buy please it's all up to you, I am not here to offload you from your shares or a spokesperson as suggested by someone here on this forum, please use your own strategy. I do want makes sense to me. I believe in SYA and am "heavily " invested . Only "Some" of my Buy orders which are at a high SP I try to bring down at a cheaper SP in order to accumulate more shares, and like everyone make substantial profit in the coming future and that's my own strategy. But I night trade our US stocks heavily!
US futures: anticipating the Feds speech tonight. S&P futures bounced back to 1.4% to the 4,200 level and it seems like a Technical move ahead of Powells key note speech. For the equities the main question is how the Central banks are seeing structural in the years to come because that will be linked to the terminal rate the Fed sees as neutral for the economy and inflation. And let's hope it's not a Hawish sentiment or translation as it will diminish gains...
Wolf; you are absolutely right in regards to the dates
Tobiasroy; The indexes are officially rebalanced after hours during the Settlement period. And Settlement systems churn large volume tapes "Buys and Sell confirming and matchings "
But, the inclusion and exclusion is not just decided or known about upon announcements. Let's say the Big boys ASX 200 Funds analysts, Fund mgrs, Capital Market managers and Wealth managers are always and I mean always networking. I know definitely in the US ... and they seek out the high probability to inclusions and exclusions. "caveat: A few already know ! No surprises there ?
Now the current Fund mgrs accumulate as much as possible, manipulate the SP down, run it up and sell down for further accumulation. This means they ensure they are primarily holding Wealth, like our Long term holders. They do this if they know the company's potential Fundamentals are strong and as an added bonus they know if an inclusion is about to take place. They will discuss Stock transfers at a Prime rate with the new Big boys, they know the Big boys need to hold so they will discuss the following: Tiered Rates, Flexible rates, alternative hedges, and more lucrative price sensitive opportunities. The deal is already done and they simply execute during the evening of the official Rebalance at Settlement. The settlement team work late, The wealth manages pass to their Term sheet Orders to their 2 ICs who execute on their behalf.
Benefits of inclusion: It cements the defining strategy and goals of the company. The volume is pretty high, you would have seen when SYA was included in the 300. But the 200 is much higher. Importantly the Big boys are mandated to Hold the shares in the Portfolio. But most importantly it attracts other Investment firms who originally had blinkers on... It's a magical FOMO show to others , you better buy in.
Later when the wedding is done and the honeymoon period is over , they lend out shares at a high interest and that's when especially in the ASX 200 things go wild.
Also please note another important event occurs which is the Triple Witching Hour also on the Friday 16 Sep. This is when 3 types of contracts expire: a. Stock options b. Index options c. Index futures
This causes wild swings in volatility. Large Institutions roll over Futures contracts to free up CASH and the volume is phenomenal!
So inclusion and the Triple Witching hour is where volatility and volume occurs.
I hope it helps.
Everyone have an awesome weekend and let's see what's in the cards next week. Take each day and each price movement as it unfolds , keep emotions at check, smile , breathe, be positive and give positivity to fellow SYA ers. Some of you guys have been holding SYA since its early days and holding long always comes with Huge gains and I respect that. I saw some nice pics you guys put out. Have an awesome weekend. I will try and post less.
SYA Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
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