Bear Markets by Day, Bull Markets by Night

In case you missed it, a Bloomberg article (hat tip Carlos) discussing a Goldman Sachs (GS) study that shows the overnight market (close-to-open) has historically been far more bullish than the daytime market (open-to-close).

We covered this same issue back in July of last year (minus the fanfare).

I’ll add another wrinkle that I haven’t heard anyone focus on – yes, the overnight has been more bullish and daytime more bearish, but playing each correctly largely depends on the broader trend of the market. Bullish markets tend to play out in the overnight, while bearish markets tend to play out in the daytime. Our previous study (which is due for an update) should make that more clear.

Comments

[schlumpf:]

a easy manipulation.

Mar 31 07:11 AM

[ain't no fo...:]

shhh, don't tell anyone

Mar 31 08:42 AM

[ETFtrader:]

You think?

Mar 31 01:28 PM

[dcb:]

no surprise. with 24 hour tradinng. I have noticed at low levels a higher open is often followed by more buying, and at higher levels followed by more selling. if you hold at the end of the day on a lower open there is usually buying no matter what level. therefore this pattern makes sense. if lower open, don't sell at open. it will often make the close. also need to follow the patterns of the quatns. they appear to increase their volume throughout the day. sometimes like end of day today get the sell. watch the volume spikes on the S&P. these are clearly quant funds, they have a pattern. learn them. the up movement from a higher level happens when all the sellers have sold and there are now more buyers from the quant fund. this moves the market up, people join in and they don't have to propel the upward movement of the market. watch it's interesting. tha't is how I figured go long in afternoon and short in mornings. (depending on where you are on the chart)

Mar 31 09:24 PM