What is going on with Preferred Stock? PFF, a Preferred Stock Index Fund, saw significant volatility in the final hour of trading. It closed in the lower end of its daily range. There was serious distribution in the final hour of trading. WSF, which is Wells Fargo Preferred, traded higher by nearly 8%.
Daily
60-Minute
1-Minute - Beginning of an MA topping pattern?
So as suspected, some of the window dressing did start occurring for the end of quarter.
Thanks Craig.
Ox
Check out C.W
What is C.W?
Citigroup W Preferred Stock. It jumped up about 13%, maybe higher, in a matter of 30 or so minutes and then was down to up only 1% within 2 minutes , then closed back near highs.
Does this mean the market is expected to have a bullish undertone on Monday?
Tough nut to crack… this could however be a sign of risk aversion… investors jumping out of financial common into the perceived safety of the perferreds. Back when the whole thing was crashing down pre-stress test the trade was to go long perferreds and short the common in the financials. You can also read some stories on the bank loan loss testing which may necessitate further capital rasing which would be dilutive to common and provide reason for investors to switch out into the preferreds… http://online.wsj.com/article/SB125383526833139325.html