Today was another interesting day for the markets and for Healthcare Reits. MPW finished slightly down today at 9.58(down 2 cents). SBRA pulled off another show of gallantry, finishing up the day up 34 cents or 2.13% at a closing price of 16.33. SBRA almost claimed the top spot once again for the Healthcare Reit subsector, but today that prize was seized by HCP which was up 2.18%.
MPW was one of the only two downperformers for the day, along with LTC, both were down 2 cents. Interestingly enough, this is the inverse of the percentage that the S&P rose for the day, for it rose .02%. Its a wild world of numbers we all live in.
"Where should MPW be?" one may be asking themselves. Well, for the answer to that we could turn to several sources. If we look at a bollinger band with a range of 30, and a standard deviation of 1, we see that MPW is pretty much right on the lower limits of the lower band of this indicator. MPW's current price is slightly higher than its 150 period simple moving average, and is right on the money where its 100 period simple moving average is concerned. The 50 period simple moving average would dictate that it should be about 1 cent higher than its current price. The upper limit for the aformentioned bollinger band is at 9.60.
"Why does this matter?" one may be asking themselves. Well, perhaps this matters today, because if anyone was watching MPW closely they would have seen some rather peculiar price moves. The day started down quite a bit for MPW, but it rose to its previous normal plateau-esque formation and then continued into the waters of price finding. Towards the end of the day MPW went from up a cent or two to down a cent or two, back and forth.
Thus, one could logically conclude that perhaps there are various parties trading MPW, looking for a specific price. Given that MPW doesn't have the heaviest of volumes, or the most protective of institutional covers, one may presume that thus, the parties having sway over these price fluctuations, had different specific price ranges in mind.
It thus perhaps, seems somewhat more than coincidental to see that the price shifted down 2 cents as it did today, because that price level, served as a vertex between its lower bollinger band range, and its 100 period simple moving average.
Thus, though electronic market participants are seperated by unknown and perhaps vast quantities of space, it is perhaps interesting to at least know the tendencies of some of our fellow market participants.
Perhaps it is valuable to at least be aware of the possibility that somewhere out there, there is someone, or some program trading MPW, which looks to see the price of MPW, stay at that vertex of its lower bollinger band(30 Period 1 SD), and its 100 day SMA. Thus, going forward it might be good to keep that price point in mind, knowing that somewhere out there, somebody thinks that thats a good price, whatever it may be.......for MPW.