Shares Really Popping!!

All of the income issues–no matter how good or how junky are really popping today. I just reviewed some utility issues and they all seem to be up 25 to 50 cents. The 1 issue I bought late last week is up 78 cents since purchase. Wow!!

Again I don’t think that prices are moving on anything more than BS and computer trading–I do know that the algo momo folks love this movement–get on and ride the wave-at least for a few hours.

From last Fridays close here is what the $25/share preferreds and baby bonds look like.

The grand total average share is up 61 cents. Banks are up 68 cents, mREITs 50 cents, investment grade 60 cents, CEFs just 33 cents (but they fell the least last week) and lastly the shippers are up $1.26.

5 thoughts on “Shares Really Popping!!”

  1. Broadly speaking, none of the preferreds we talk about are algorithmically traded by the large HFT (High Frequency Trading) firms. HFT algorithms assume they always have liquid markets, i.e. there are always willing buyers and sellers at narrow spreads. This is certainly NOT true of most the preferreds we discuss. If you threw a 25k share market buy order at any of them, the price would go to infinity and beyond. Likewise a 25k share sell order would send the price to zero or 1 cent.

    The perceived momentum trades are likely either a handful of individuals or small funds, probably less than 100 marginal buyers/sellers is my best guess.

  2. I’ve sold some as well. But it’s not fair to say it’s algo/momentum. There’s also a repricing going on with the rate cuts.
    last week you might have req’d a YTC for 12-15mo of 3.5% with your $mkt yielding 1.30%. $mkt on its way to 50bps that req’d YTC could be 2.5% and the !% gain has just been captured. just roughly speaking..
    but buying last week was a nice gift for everyone on here..

  3. Call me dumb but I have been selling into this run up. IMHO this Corona virus is about to go main stream in the USA while we are partying in the streets. Dow is up ~1200..

    1. Martin, I am glad you are around. You make me feel like a buy and hold guy, ha. Some things I bought to take advantage of entry points in issues I have wanted to get in and others I flipped already also. And a few Im surprised I haven’t flipped. RPT-D for example I bought 2 days ago. It didnt trade today but had a standing unmolested bid over $2 higher than what I paid for.
      I sold these on a flip and regretted it, so I am not eager to let go this time.
      I also regret not totally loading up on CHSCN just yesterday after I bought 500 at 26.25 (these were second round flips, lol). I wasnt thinking kill shot like I should have been.
      But still I would never dreamed even just a year ago my 2 biggest positions would ever be STAG-C and EP-C. Fairly easily to figure that reason out.

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