Anyone scalping the FTSE Futures??

Me thinking I'm a great retail investor!

Whats actually happening...

wrh.jpg
 
postman said:
View attachment 293038

'Tis my humble opinion that the price has been forced higher because index funds (of which there are many) have been forced to buy the damn stock to include in their portfolio. As is usual when companies move in and out of an index the one leaving has its share price pummelled through all the selling and then after leaving value investors pick it up at a bargain price. The other (I refuse to type the name) finds itself wildly overvalued and then drops.
Given said company will be one of the largest companies in the s&p it will also have an exaggerated effect on the index, which will cascade onto other indexes.
TL;DR Big falls on Monday all round!
Click to expand...
Two hour's AFTER I post this we get ...

FRIDAY, DEC 18, 2020 - 5:20 EST (12:20 GMT)

On Monday, Tesla Will Join The S&P500: Here's What Happens Next​


In a recent paper titled "Tesla - The Largest-Cap Stock Ever to Enter S&P 500: A Buy Signal or a Bubble?”, Arnott and a colleague at Research Affiliates looked at 31 years of data and found that when a company is big enough to enter the index as one of its 100 largest members, it falls 7% over the following year, on average. Meanwhile, the average deleted company beats the gauge by 20% after being kicked out (in this case, Tesla is replacing Apartment Investment and Management which is down 46% YTD).

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com www.zerohedge.com
 
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