Strange volume spikes....... | stockbee

3/29/2007

Strange volume spikes.......

In next couple of days you will see strange volume and price spikes related to Index changes.

Standard & Poor's Announces Changes to U.S. Indices

NEW YORK, March 27 /PRNewswire-FirstCall/ -- Standard & Poor's will
make the following changes to the S&P 500, S&P MidCap 400, S&P SmallCap
600, and S&P REIT Composite indices:
-- S&P MidCap 400 constituent Abercrombie & Fitch Co. (NYSE: ANF) will
replace Univision Communications Inc. (NYSE: UVN) in the S&P 500, S&P
SmallCap 600 constituent Phillips-Van Heusen Corp. (NYSE: PVH) will
replace Abercrombie & Fitch in the S&P MidCap 400, and Blackbaud Inc.
(Nasdaq: BLKB) will replace Phillips-Van Heusen in the S&P SmallCap
600 after the close of trading on Wednesday, March 28. Univision is
being acquired by an investor group including Madison Dearborn
Partners, Providence Equity Partners, Texas Pacific Group, Thomas H.
Lee Partners and Saban Capital Group in a deal expected to close on or
about that date, pending final approvals.

-- S&P SmallCap 600 constituent NVR Inc. (Amex: NVR) will replace New
Plan Excel Realty Trust Inc. (NYSE: NXL) in the S&P MidCap 400, Arris
Group Inc. (Nasdaq: ARRS) will replace NVR Inc. in the S&P SmallCap
600, and One Liberty Properties Inc. (NYSE: OLP) will replace New Plan
Excel Realty Trust in the S&P REIT Composite after the close of
trading on Wednesday, April 4. New Plan Excel Realty Trust is being
acquired by S&P Global 1200 constituent Centro Properties Group in a
deal expected to close on or about that date, pending final approvals.

-- Spartan Stores Inc. (Nasdaq: SPTN) will replace Carreker Corp.
(Nasdaq: CANI) in the S&P SmallCap 600 after the close of trading on
Friday, March 30. Carreker is being acquired by S&P MidCap 400
constituent Checkfree Corp. (Nasdaq: CKFR) in a deal expected to close
on or about that date, pending final approvals.

-- Education Realty Trust Inc. (NYSE: EDR) will replace The Mills Corp.
(NYSE: MLS) in the S&P REIT Composite after the close of trading on
Wednesday, March 28. Mills is being acquired by S&P 500 and S&P REIT
Composite constituent Simon Property Group Inc. (NYSE: SPG) in a deal
expected to close on or about that date, pending final approvals.
Standard & Poor's will monitor these transactions, and post any
relevant updates on its website: http://www.standardandpoors.com.
Abercrombie & Fitch operates as a specialty retailer in the United
States. Headquartered in New Albany, OH, the company will be added to the
S&P 500 GICS (Global Industry Classification Standard) Apparel Retail
Sub-Industry index.
Phillips-Van Heusen engages in the design and marketing of various
apparel products. Headquartered in New York, NY, the company will be added
to the S&P MidCap 400 GICS Apparel, Accessories & Luxury Goods Sub-Industry
index.
Blackbaud provides software and related services for nonprofit
organizations. Headquartered in Charleston, SC, the company will be added
to the S&P SmallCap 600 GICS Application Software Sub-Industry index.
NVR Inc. operates as a homebuilder in the United States. Headquartered
in Reston, VA, the company will be added to the S&P MidCap 400 GICS
Homebuilding Sub-Industry index.
Arris Group operates as a communications technology company.
Headquartered in Suwanee, GA, the company will be added to the S&P SmallCap
600 GICS Communications Equipment Sub-Industry index.
One Liberty Properties is a REIT that engages in the acquisition,
ownership, and management of commercial real estate properties in the
United States. Headquartered in Great Neck, NY, the company will be added
to the S&P REIT Composite Diversified REITs sub-industry.
Spartan Stores engages in the distribution and retailing of groceries.
Headquartered in Grand Rapids, MI, the company will be added to the S&P
SmallCap 600 GICS Food Distributors Sub-Industry index.
Education Realty Trust is a REIT that engages in the acquisition,
ownership, leasing, and management of student housing communities near
university campuses in the United States. Headquartered in Memphis, TN, the
company will be added to the S&P REIT Composite Residential REITs
sub-industry.
Following is a summary of the changes:


S&P 500 INDEX - March 28, 2007
COMPANY GICS ECONOMIC GICS SUB-INDUSTRY
SECTOR
ADDED Abercrombie & Consumer Apparel Retail
Fitch Discretionary
DELETED Univision Consumer Broadcasting & Cable TV
Discretionary


S&P MIDCAP 400 INDEX - March 28, 2007
COMPANY GICS ECONOMIC GICS SUB-INDUSTRY
SECTOR
ADDED Phillips-Van Consumer Apparel, Accessories &
Heusen Discretionary Luxury Goods
DELETED Abercrombie & Consumer Apparel Retail
Fitch Discretionary


S&P MIDCAP 400 INDEX - April 4, 2007
COMPANY GICS ECONOMIC GICS SUB-INDUSTRY
SECTOR
ADDED NVR Inc. Consumer Homebuilding
Discretionary
DELETED New Plan Excel Financials Retail REITs
Realty Trust


S&P SMALLCAP 600 INDEX - March 28, 2007
COMPANY GICS ECONOMIC GICS SUB-INDUSTRY
SECTOR
ADDED Blackbaud Information Application Software
Technology
DELETED Phillips-Van Consumer Apparel, Accessories &
Heusen Discretionary Luxury Goods


S&P SMALLCAP 600 INDEX - March 30, 2007
COMPANY GICS ECONOMIC GICS SUB-INDUSTRY
SECTOR
ADDED Spartan Stores Consumer Staples Food Distributors
DELETED Carreker Information Data Processing &
Technology Outsourced Services


S&P SMALLCAP 600 INDEX - April 4, 2007
COMPANY GICS ECONOMIC GICS SUB-INDUSTRY
SECTOR
ADDED Arris Group Information Communications
Technology Equipment
DELETED NVR Inc. Consumer Homebuilding
Discretionary


S&P REIT COMPOSITE INDEX - March 28, 2007
COMPANY GICS ECONOMIC GICS SUB-INDUSTRY
SECTOR
ADDED Education Financials Residential REITs
Realty Trust
DELETED Mills Financials Retail REITs


S&P REIT COMPOSITE INDEX - April 4, 2007
COMPANY GICS ECONOMIC SECTOR GICS SUB-INDUSTRY
ADDED One Liberty Financials Diversified REITs
Properties
DELETED New Plan Excel Financials Retail REITs
Realty Trust

8 comments:

market operator said...

Have you found any evidence there is an edge in shorting those names being deleted from an index and buying those being added to an index. The thinking being the index funds will be forced to rebalance their portfolios.

I believe this worked in the past but was curious if there was any evidence if this still exists, my first thought is not likely since it is widely known. Interesting book called "Ugly Americans" describes a large trade like this on the Nikkei many years back.

easyguru said...

There is an edge in it. But hundreds of large specs are trying to game it. It boils down to small edge or large edge perspective. I do not waste my time and energy on such small edges, because to trade such things profitably, you need tonnes of capital available to you for at least a short period of time.
Some edges are small speculators edges, some are large speculators edges.
I seldom look at ideas with potential below 20% returns. Not worth wasting time and energy on them at this stage.

KN said...

What do you use to value a company after the episodic pivot point?

walter said...

your steel deals announced this AM...

good call

Pradeep Bonde said...

KN
I do not use any valuation techniques. I am loking for catalyst.

Walter
Thanks.

modj97 said...

Plan your trades and trade your plan. The market will often throw you unexpected surprises and you have to have a backup plan for dealing with them.

A stop will help you gracefully exit a position before it turns into a disaster and having a thought out plan for unexpected situations puts you in control of those events when less prepared individuals will fall flat on their faces.

If you are selling your winners to early (like me)or failing to cut losers (like me), you need to work on those market weaknesses and develop a plan of action which will turn the odds in your favor.

What type of action plans have you developed that has turned the odds in your favor? I am old...but can learn fast.

Thank you for your help!

Pradeep Bonde said...

If your system picks trading vehicle likely to go up a lot, stops is a small part of the success equation. No one element of trading mix equity selection, entry technique, exit technique and risk management by itself is important. As a total mix it is important. Stop techniques which work for certain low profit trading techniques do not necessarily work for the kind of stocks which are part of 100% plus universe.
Those claiming risk management is everything or exit is everything, entries do not matter, or vehicle selection is not important have a limited view of how markets work.

Stock Trader said...

thank you for the reply!