1/THREAD: UNDERSTANDING PRICE TRANSMISSION VIA ARBITRAGE $ABXX $ABXXF

TL;DR: While I couldn't possibly be more bullish @abaxx_tech, today is NOT the day to buy the U.S. ADR $ABXX, which is trading at a ridiculous premium to the last $ABXX (Canadian) close.

WAIT FOR TOMORROW!

2/What's happening today is not specific to $ABXXF. It affects a lot of Canadian stocks with U.S. ADRs, and many of those ADRs are up a lot this morning.

They're not up because the companies got better. They're up because Canadian markets are closed. The connection isn't obvious

3/Let's still with @abaxx_tech to explain the concepts thru example.

$ABXX is the Canadian ticker. This company has tremendous prospects, and no doubt in my mind the stock is headed MUCH higher long-term.

But that his NOTHING to do with why the price literally doubled this AM.

4/What happened this morning is that when someone bought $ABXXF at the open--and it probably wasn't even a big order--there was no seller to match the order to at a reasonable price.

The result: the price spiked to +92% from the prior close instantly! BUT...

5/The reason the price spiked had nothing to do with its value going up. The price spiked because THERE WAS NO SELLER OFFERING LIQUIDITY to absorb the buy order.

Why not? One reason is that few investors holding ABXXF have any desire to sell it. But NORMALLY, there would have