Something big went down with Friday’s mysterious block trade spree… And it scares the bejesus out of me.
A block trade is usually made by big institutional investors, and involves buying or selling a huge number of shares. These types of trades are normally divided into smaller orders and executed by various brokers to hide how large the trade actually is.
And now, investors are left wondering if these major sell-offs were a one-time event, or if they were just the beginning.
So instead of my usual market analysis video, today I want to do something a little different. I want to cover this block trade spree that is something of a stock market phenomenon.
On Friday, I was talking to a couple of investing friends of mine. They told me how they were witnessing something that had them spooked.
Apparently there were huge blocks of shares — I’m talking about $20 million to $30 million blocks — of traditional media companies that were being sold in just a couple of clicks.
That’s billions of dollars worth of stocks that were sold off…
And that’s not normal, guys.
What Triggered Friday’s Block Trades Spree?
Block trades can also be seen outside of the open markets. This is done in order to lessen the impact on a particular stock’s price when a large trade is made.
On a typical day in the stock market, you’ll see a block trade that involves anywhere from $200,000 to $1 million worth of shares.
So to see block trades worth $30 million being traded all day in the same selective names is a major red flag…
Seeing all this forced selling means a hedge fund was blowing up, and what we’re witnessing is its liquidation.
And that has me asking myself exactly who is blowing up… and why?
But more importantly, how is all of this related to GameStop?
For a deeper look into Friday’s block trading spree, check out my video below. In it I cover how using my Monthly Money Flows strategy could help you profit during the next block trade. And as always, email any trading questions to jeff@joyofthetrade.com and stay ahead of the markets — especially these choppy ones — by subscribing to our YouTube channel.
P.S. What would you say if I told you there’s a glitch in the market that forces Wall Street to buy up a stock…
Sending its price 200%… 300%… and even 1,000% upward in as little as 24 hours?
I’m not talking about tech explosions, value investing or risky penny stocks. I’m talking about household names soaring triple and even quadruple digits.
And knowing when this glitch happens could help you grab some of the fattest paydays…
That’s exactly why stock market expert Adam Sarhan is finally revealing how you can spot the next one.
