What we are seeing is typical of the trading that usually precedes the release these results. Instos make this happen every time by volatility trading.
The Average True Range (ATR) daily (over the last 14 days on average) trades 2.1c (as a percentage of price = 4.9%) and the ATR weekly (over the last 14 weeks on average) trades 4.0c (as a percentage of price = 9.1%).
As of the 12 January the shorts are 1.08%. Lets see what this is in a couple of weeks.
So these ATR percentages are a pretty good indication of what can be made every day/week. This short-term volatility trading by instos is pretty consistent and they do make good money by just looking at this type of trading percentage movements.
In my opinion this also is in part due to the predictability of how often and consistently AMI releases exploration and other results. We are spending around $30 million p.a. on exploration activities so there are a lot of holes drilled and assay results that could be released other than on a quarterly basis. This somewhat boring predictability is a bonus for the instos trading algorithms.
The volume we are now seeing shows the 'bets' they/instos are taking on the results. I'll be watching for any substantial shareholders announcements.
Additionally I detect there is a greater 'feeling' of optimism at least on HC, that these figures will be better than the last quarter. If they are then we may finally see the much hoped for breakout.
All the best.
KKR
AMI Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
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