Spreadsheets are not only for balancing checkbooks.
Imagine a rocket just re-entering earth’s atmosphere with the intent to land on a barge in the middle of the ocean. Would it be controlled by a Mission Control similar to the one NASA uses?
No. The communication and decision times are too slow. Instead, the rocket is equipped with hundreds of sensors and instruments that are measuring literally everything, in real time, constantly, many times per second.
Results are calculated and listed in the master spreadsheet. For each result is a programmed order. “If this, then that. Or if that, then this.” The decisions are made and implemented in nano or pico seconds, because that is how quickly the rocket must be controlled.
Now say that, hypothetically, there is a stock trading program measuring inputs and categorizing them into a spreadsheet. The programming is tracking a stock and making buy/sell decisions based on programmed orders. Is this not what the human traders are up against with the MM’s trading programs?
These decisions are implemented as soon as the programmed status is obtained. The number of trades is only limited by the actual speed of the movement of the stock and the speed of the data communication. Trades can happen unlimited times per minute as long as the programming criteria is met. Which leads me back to the question from Gold80302 of “who is buying this stock” and why.
Buying TSLA or XOM would make some dollars. A small amount per trade perhaps, but with many trades per minute, cumulatively, over a trading day, it adds up. Just an observation.
Why would a commercial investment organization really be interested in a GSPE? This stock would not be a good choice since the volume is too low and erratic. And the value of an entire day’s trading might be only $25,000, or even less. The value of the time required for the trading program to be used to buy a stock like GSPE just does not make sense. Maybe as spec says, it is a lone trader’s “lotto” play. That is a better possibility.
Or might it be somebody looking to increase an ownership stake (Delek or GSPE insiders)? Or establishing an ownership stake (CENAQ insiders)? Just as likely. Perhaps more so if an investment decision is planned.
I know there is no way for us to know the answer. But it is on my mind too, and I cannot shake it. Looking for clues. Needle-in-the-haystack progress. And not enough hours to allocate. But the fact remains, somebody is buying GSPE stock at this time. And this is more significant than who is selling, as long as it is not a GSPE insider’s action.
Mrs. Smith
AI
