1/THREAD: THE FIRST TWO HOURS OF $ABXX TRADING
$ABXX began trading on the Candian @Aequitas_NEO exchange this morning. 433k shares traded in the first two hours with most early trades “pinned” within a few cents of $4.00CAD. This thread contains my analysis of the early trading.
$ABXX began trading on the Candian @Aequitas_NEO exchange this morning. 433k shares traded in the first two hours with most early trades “pinned” within a few cents of $4.00CAD. This thread contains my analysis of the early trading.
@Aequitas_NEO 2/DISCLAIMER: I’m a pro futures trader, not an equity guy, so I definitely welcome correction and critique from pro equity traders who know the mechanics of the market better than I do.
@Aequitas_NEO 3/The vast majority of early trades have been within a few cents of $4.00CAD, and the vast majority of those trades had Sell Firm code 001 or 212 on the selling side of the transaction, suggesting a small handful of sellers doing most/all of the selling.
@Aequitas_NEO 4/This confirms exactly what I predicted in macrovoices.com/ErikOnABXX is happening: A few early angel investors (whose cost basis from 2018 is well below $1) are taking profits. Most likely, they are “free-riding” their positions, meaning…
@Aequitas_NEO 5/…they will sell enough to recover their original investment capital and then hold their remaining shares long-term knowing they can’t possibly lose money no matter what because they already took their initial capital back out of the market. This is an extremely popular angel
@Aequitas_NEO 6/ investor strategy. This selling is capping the price at C$4 for now. This trading is below the highest trades on NML.TO before the merger closed, and hence this is exactly the “price dip on early angel investors taking profits” that I predicted in the podcast.
@Aequitas_NEO 7/The frustrating part is that a whole bunch of people (myself included) want to be buying this dip, but we’re locked out of the market because our brokers have yet to activate the ABXX:CN symbol. This means the buyers aren’t even in the market yet!
@Aequitas_NEO 8/After staying “pinned” at $4 for the first hour and a half, the price is starting to come off, with the low trade of the day as of this tweet at $3.90. This means the sellers still have plenty of shares to move, but the would-be buyers are still locked out of the market!
@Aequitas_NEO 9/I won’t be surprised if this pulls the price lower through the rest of today’s session. I want to be buying here, but so far @IBKR isn’t cooperating. :(
Eventually the brokers will get their act together, the buyers will have access to the market,
Eventually the brokers will get their act together, the buyers will have access to the market,
@Aequitas_NEO @IBKR 10/and eventually the early angels looking to “free ride” their positions will have sold the shares they need to sell. At that point I think the stage will be set for the stock to move considerably higher.
/END THREAD
/END THREAD
@Aequitas_NEO @IBKR It looks like two sellers are doing almost all of the selling in @abaxx_tech $ABXX... 
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