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2 FUNC Quirks

|About: First United Corporation (FUNC)

Index funds must buy four months of FUNC’s average trading volume in less than ten trading days.  We will see how much that process impacts the stock’s price. 

  1. FUNC’s average volume is much lower if one excludes a few spikes on trading days that are unlikely to be indicative of remaining supply. 
  2. The volume on May 11 was less than half of what index funds will buy by the end of next week and there appears to have been a significant price reaction.

Keep an eye on its volume and price this month.  While skeptics claim that sophisticated index funds with access to dark pools can trade efficiently enough to avoid moving the price, such reputed sophistication does not abolish the law of supply and demand.  In the case of First United (FUNC), a massive wave of demand is about to slam into a finite supply.

Disclosure: I am/we are long FUNC.

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