Trading In Trash Financials Made Up Almost One-Third Of August Volume On NYSE

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Charlie Gasparino says shares of junk financials–companies like Fannie, Freddie, AIG, Citi and Bank of America–are being pushed up by a short squeeze.

The Wall Street Journal’s Matt Phillips suspects its high frequency traders.

Others say its retail speculation and day traders getting their way while Wall Street’s grown-up take the last couple of weeks of the summer off.

But whatever is driving the trades, there are a lot of them. Phillips ran the maths on the huge volume of trading in these stocks:

We asked our crack squad of Dow Jones maths ninjas to crunch the numbers on these five stocks to find out exactly how much of the entire market action is made up by their trades. Since Aug. 5 — when we saw names like Fannie, Freddie and AIG reawaken — trading in those three stocks, plus Bank of America and Citi, has averaged about 31.5% of the NYSE consolidated volume. At their peak on Monday, these five stocks accounted for nearly 43% of the NYSE consolidated volume. That’s pretty remarkable.


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