Index will only start buying most probably last 10 mins lol. But I’ve read a post. The guy sua max 5% because the news was put out prolly a month ago and it makes sense?
I've received multiple questions about a specific, relevant issue.
There seems to be a lack of understanding re process of the SP500 inclusion. Many expect an outsized move to satisfy demand by index buyers at the last minute.
There are entities, let's call them financial middleman, arbitragers, individuals/firms with deep pockets who immediately upon the nov 16 SP500 committee announcement began to accumulate TSLA shares. These entities are not long term investors, they do things similar to this whenever opportunity strikes, so their plan was to buy TSLA shares with the express purpose of selling those shares to the last minute index buyers, particularly the passive index tracking funds. These entities will NOT hold TSLA shares past the close of post market trading this friday dec 18. So their accumulated shares are "must sell shares" , even as the passive indexers are "must buy shares". So the last minute buyers will have a very ample supply of shares to buy at the regular close or shortly thereafter in postmarket friday to satisfy their ability to mimic SP500 starting on monday dec 21. It has been largely the buying by these entities and others joining in that has caused the rise in TSLA stock , in this last month since the announcement , from the 400's to the 600's now. That is the "spike", a month long one , naturally with fits and starts. If there are more must buy shares than must sell shares available at the close the stock will tick up, if there are more must sell shares , the stock will tick down. The down this week has mainly been driven