SNSN schreef op 3 juli 2014 10:05:
[...]
As for PP/R/S, that's just result of yesterday price dynamics....
As for the basic reasons for that (yesterday) dynamics - that was a usual market reaction on well expected "news" (read yesterday post)
If shortly, "arbitrage" traders had to leave, as was nothing for them to wait for, and "volatility" traders were taking advantage....
Given that the prob for e-plus deal to be approved was very high (everybody knew this), the only very small risk was invoved, and there was actually nothing to be expected for "arbitrage traders" (exploiting "jump processes").
For further stock dynamics (rising) the basic drivers are shifting to much longer time-horizons (due to, for instancre, improved financials, fundamentals, performance, etc.) ... shifting/changing shareholders' structure to more investment objectives (although some "m&a arbitrage" traders may still play some role for some time). Of course, this is a very simplified schematic picture.