PG&E’s Plummeting Shares Foreshadowed by Reserve Order Sellers

Insights October 20, 2019 Daily Unicorn

Andy Lee

Director of Quantative Research

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Exegy’s Liquidity Lamp detects and tracks reserve orders (aka “iceberg”) executions and publishes the daily top 10 symbols by reserve order volume on our exegy-signum.com website. The number one symbol on Oct 25, 2019, was PCG (Pacific Gas& Electric). The vast majority of reserve order active were selling PCG stock where we tracked 567,847 shares sold to 126,007 shares bought with reserve orders on Oct 25. PCG stock fell over 30% on Oct 25 and continued the double-digit sell-off on Monday, Oct 28th. 

An Early Warning Sign: We note that the initial spike in reserve order activity occurred on Thursday Oct 24 when 129,166 shares sold via reserve orders vs 27,975 were bought with reserve orders when it closed at $7.20 vs the current price of $4.27 or a 40% selloff that may have been tipped off by institutional investors who typically use reserve orders to move large volumes of shares while trying to limit market impact. 

Momentum Tracker: The street’s negative sentiment toward PCG is no secret as it grapples with another wildfire and power cuts to millions of residence, but the ability to quantifiably see the data is a powerful tool to measure the sustainability of this current momentum for traders. The chart below from exegy-signum.com shows the aggregated 7 days of reserve order activity. The dark green shows the total reserve order volume while the tall light green shows the total volume traded while the Liquidity Lamp signal was “lit”. On Oct 25 693,853 reserve order shares were executed an over 5.9 million shares traded while the signal was lit.

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Exegy’s Liquidity Lamp is a real time signal delivered with every NBBO quote and trade update for every equity symbol traded on the U.S. exchanges. Visit exegy-signum.com to learn more and inquire about our free sample data.