This morning, OTAS intraday Alerts fired consecutively in 4 Real Estate names indicating an unusually aggressive move down in the shares over the last hour. Bovis, Redrow, Bellway and Barratt Developments all flagged that their absolute share price returns were now exceptional compared to how they would typically be expected to trade over a similar time frame historically. When analysing the individual microstructure of each stock none were experiencing significantly high volumes to accompany the move. They were being inadvertently forced lower.
Noting such a high concentration of sector peers exhibiting similar behaviour in performance implied an unrestricted Sector ETF or Real Estate basket seller was at work. Whoever was trading the basket had little consideration of the impact they were having or the magnitude of their actions.
However, it seems these idiosyncratic share price moves were alpha signals to some market participants/OTAS users.
The OTAS ‘Return Low’ Alerts identified the price* inflection points almost to the minute – with all 4 stocks rallying from their lows.
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*denoted by the white line on the charts