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Microsoft (MSFT), Nuance Communications (NUAN) - Market Structure Edge's Quast Tells Benzinga the Shorts Pre-Told Microsoft's Acquisition of Nuance


 
Why Did We Believe the Acquisition Deal for Microsoft (NASDAQ:MSFT) of Speech Technology Company, Nuance Communications (NASDAQ:NUAN) was Imminent?
People started to bet on a deal that Microsoft would pursue something. How did we know that? Because short volume, that is the percentage of daily trading volume coming from borrowed stock, dropped to what we call our deal threshold level at about 30%.
It’s important to understand that about half of all market volume, around 45% of it, comes from borrowed stock. So, when you see a bunch of volume out there, half of that volume isn t coming from owners, it’s people furnishing borrowed stock. So, when that level drops to near 30% you can conclude two things. Number one, the cost to borrow that stock has risen and machines just go around the market scooping up cheap stuff to borrow and furnish to the market because they just want to inter-mediate the intraday volatility, which by the way in the S&P 500 is 300 basis poin ....

Tim Quast , Speech Technology Company , Nuance Communications , Market Structure Edge , Premarket Prep , Did We Believe , Acquisition Deal , Tech Sector , நுணுக்கம் தகவல்தொடர்புகள் , சந்தை அமைப்பு விளிம்பு , கையகப்படுத்தல் ஒப்பந்தம் , தொழில்நுட்பம் துறை ,