Market Order for VTI

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Market Order for VTI

Postby og15F1 » Sun Nov 25, 2012 5:19 am

For illustration only:


I speculate that someone had a market order to sell VTI at the end of the day this past Friday 11/23 that was executed after hours with someone's bid for $71.60

This was just interesting, for me, to see that the days trading volume of nearly 800k shares pushed the price up 1.3% and that was almost wiped out by the sale of a single lot of 100 shares

Buyer, and seller, beware :twisted:
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Re: Market Order for VTI

Postby TheGreyingDuke » Sun Nov 25, 2012 7:13 am

I recall reading here or elsewhere that ETF transactions should never take place either in the first 45 minutes or last 45 minutes of a trading day.

Watching prices, I can verify that there is a sharp rise in bid prices until things get going and a sharp decline as the day winds down. On the other hand, if I were looking to score, I might take advantage of this to put in a low bid near the end of the day.
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Re: Market Order for VTI

Postby letsgobobby » Sun Nov 25, 2012 7:37 am

That sounds like really low daily volume for a major broad market ETF. How many shares would be required to start moving prices significantly (not after hours)?
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Re: Market Order for VTI

Postby sscritic » Sun Nov 25, 2012 7:44 am

Remember, that was on Black Friday, which has the greatest number of sales of the whole year. Oh, that's right, that's for TVs, not for stocks. Maybe Black Friday is just an ordinary day on the stock market. No, that's not right either. Hmm, I wonder what the Black Friday effect really is? Let me think before I post.

Too late.
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Re: Market Order for VTI

Postby jdilla1107 » Sun Nov 25, 2012 9:43 am

letsgobobby wrote:That sounds like really low daily volume for a major broad market ETF. How many shares would be required to start moving prices significantly (not after hours)?

The answer to this is the same as "how many shares would it take to move the entire stock market". This is because traders who do arbitrage will take your vti flow and pump it all over different securities and markets. This is precisely why low volume efts can still have pretty decent liquidity.
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Re: Market Order for VTI

Postby runner9 » Sun Nov 25, 2012 9:45 am

Don't forget also that the stock market closed at 1pm on Friday for the holiday, so that's three less hours of trading.
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Re: Market Order for VTI

Postby livesoft » Sun Nov 25, 2012 10:28 am

This appears to be an extended market hours trade.

One of my brokers only allows limit orders for the extended market hours trading. And there is no confusing an extended market order with an order intended to trade during standard market hours. Even Good-Til-Cancelled (GTC) orders are not traded in extended market hours unless one specifically requests that to be the case.

And who knows? Maybe VTI will be trading at 69 when the market opens again. :twisted:
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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