GM share prices plummeted 17% today. There are 560mil shares of GM stock outstanding. In the space of 15min 2mil shares changed hands, and the price broke below $7.00. Below $7, 3mil shares were stopped out and sold and the price fell below $6.50. Below $6.50 4mil were stopped out and the price fell below $6.00. The final 4mil sold out and at $5.50 the price bounced.
The percentage drops from the open were 3%, 10%, 14%, and 21%.
There was no news relevant to GM that wasn't known yesterday. 98% of shares did not trade so 2% of shares caused a 21% fall.
So where do you set your stops? Does your trading platform come with guidelines on where to set stops? Did the traders who were out at 3% get back in at down 20%? It seems there were some buyers below $6.00. (15mil shares) Was that sidelined money seeking value?
I have no clue, but it happened to Cemex yesterday. A 12% fall on less than 2% shares traded. And AIB.
Does it mean anything at all?