Replies to post #1258 on Idera Pharmaceuticals Inc (IDRA)

[nsomniyak]

Index funds buy at the close - they seek to track the index not beat it. Furthermore the index changes have been final for a week - they just went into effect at the close today.

[macnqueso]

one would think so... except for this thing called the closing cross... nearly all stocks added to russell were down in the closing minutes (seconds) of 6/27/14... and on large end-of-day volume to boot...

"The Closing Cross brings together the buy and sell interest in specific NASDAQ, NYSE and NYSE Amex stocks and executes all shares for each stock at a single price, one that reflects the true supply and demand for these securities. All nationally-listed securities are eligible for the NASDAQ Closing Cross."

"Approximately 810.6 million shares representing $17.9 billion were executed in the NASDAQ Closing Cross in 575 milliseconds across some 2,304 NASDAQ-listed stocks."

http://www.marketwatch.com/story/nasdaq-closing-cross-calculates-us-russell-indexes-for-the-eleventh-consecutive-year-for-russells-annual-reconstitution-2014-06-29?reflink=MW_news_stmp

[tutankhamen]

You would think...xx$i a tobacco company also got added and dropped 20% so go figure. Someone said hedge funds and mutuals can buy before the official rebalancing starts but index funds have to wait til the day of. Apparently the former get in and run them up to the news and then sell.