Tuesday, September 01, 2009

Concentrating on conspiracy theory

This one might keep you awake at night, wondering who, what, why and where to from here?:

Recent Concentration of Volume in Financial Stocks: Coordinated Capital Infusion?

What we see is that, early in 2007, those three stocks [Citigroup, Fannie and Freddie] accounted for only 1-3% of NYSE volume. During the financial crisis of late 2008 and again as the market was bottoming in early 2009, that ratio skyrocked to well over 50%.

Recently, however, the volume in these three stocks has hit astronomical levels relative to total NYSE trading, as all three have made phenomenal percentage gains during August. Indeed, the composite volume of these three stocks alone has recently doubled total NYSE volume. If we look at just the NYSE trading of these firms, they are accounting for about 40% of NYSE volume.

I’m not inclined toward conspiracy theories, but ....

You'll want to read the details and his "but".

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