Wednesday, July 30, 2008

The Stock Market Appears to be Broken

Okay, call me crazy, and I know you will, but something seems wrong here.

Because of the size of the option bet I have on BMO right now, I've been watching its stock performance quite closely. Given its dividend payment on Friday, I'm counting on it to outperform financials this week.

But today, it's acting oddly. Driving me mad, actually. The financial sector is pretty much universally up today, but BMO is not. That, in itself, doesn't really mean anything's broken...just not going the way I planned. But what is broken is that BMO is up about 2% on the NYSE, while being down about 0.3% on the TSX. They are otherwise moving together. This is the same stock, so the difference between the two's performance should represent only change in exchange rate, which is not the case here.

Of course, the two prices aren't linked directly, but are connected in that large institutional investors could buy on one exchange and sell on the other if the gap was big enough to make it worth their while.

Anyway, pissing me off, but what else is new. Still hoping for good performance going into Friday.

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