When inventory says sell but your signal says hold
You're long shares of a stock the market values at . Two forces pull your quotes in opposite directions:
- Inventory: being long argues for skewing down to sell; your inventory penalty is worth about cents on your reservation price.
- Signal: you have a mild bullish read, a correlated indicator suggests fair value is drifting up by about cents.
Where do you center your quotes, and how do you think about the tension?