Salesforce.com reported earnings this morning that beat estimates as well as the company raised forward guidance. The stock is trading up over 4% today on this news, but the momentum has since waned.
Using the information in the Microstructure in Tradeshaper, you can see where the trading activity is coming from to help you best determine your trading strategy. As sellers started to take advantage of liquidity and the strong demand to buy stock, the Microstructure allows you to use this transparency to adjust how you are trading.
At 10:49am, there was an increase in Bid-side Liquidity. The stock immediately began trading down as this liquidity unearthed sellers who were willing to hit the bids.
You can see this activity coming across in the Net Traded Volume graph as more sellers are captured in the below. Sellers are captured in the Blue Bid-side Line in the Traded Volume graph and in the Red Bars in the Net-Traded Volume graph:
The stock began to under perform its bespoke basket as sellers were given more bid-side liquidity. Only when the bid-side liquidity dried up, did the stock price stabilize.