123Tom's TA study group

[F1ash]

What is your take on the coming Russel deletion effect?

“Q: When is reconstitution this year?

A: The 2018 reconstitution of the Russell US Indexes will occur June 22. Provisional Russell US indexes will be published beginning on June 8 to allow investors to track the new indexes prior to the reconstitution effective date. This allows investors the option to choose the date on which they execute their index trades.

Q: What's the basic process for the Russell US index reconstitution?

A: On rank day in May (this year May 11), all eligible US securities are ranked by their total market capitalization. Companies whose stocks are listed on eligible stock exchanges and who pass investability rules are considered for inclusion in the indexes. Beginning on June 8, preliminary lists of additions and deletions to the indexes are communicated to the marketplace. These changes go into effect after the close on Friday, June 22.”


Russell 3000® Index - Deletions

ANAVEX LIFE SCIENCES AVXL Health Care

http://www.ftserussell.com/files/support-documents/2018-preliminary-russell-3000-index-deletions

I would be really interested to know who was behind the “campaign” that recently appeared to promote Anavex stock. (It appears to be over because it is no longer an “ad” on my google searches. )

I think it’s possible that someone wanted this run to occur before the added selling pressures from the coming Russel deletion so they can short it from a higher price.

Does that sound like a reasonable explanation for this run on “no news” or do you attribute the run to technicals or the upcoming conference presentations?

A study on historical deletion effects...

http://www.hillsdaleinv.com/portal/uploads/The_Russell_Reconstitution_Effect,_Ananth_Madhaven,_Financial_Analysts_Journal,_JulyAugust_2003,_Pages_51-64.pdf