I was re-reading a post I'd bookmarked here that discusses a trend, up to that point at least, where almost all of the market's gains happen overnight, as opposed to during regular trading hours. The New York Times did a story on it a few years before this post as well. The markets have been pretty volatile lately, whipsawing up and down, and nobody seems to know how long that will continue, but it got me thinking about the current trading environment, and thus I was wondering three things:
1) Is this a trading strategy that anyone currently uses? If so, how successful has it been, and how/when do you use it?
2) Is there a source of this type of information that is fairly up to date (futures performance vs day performance)?
3) Would/should this type of investing strategy work in all three market environments (bear, bull, crab/kangaroo), and if so/not, why so/not?
I know that overall performance in a buy-and-hold portfolio wouldn't be meaningfully different from this strategy, especially when you take into account capital gains taxes and transactions costs and so on, but in volatile markets, or for shorter-term traders, I wonder what this sub thinks of this strategy, even used for an entire index like the S&P 500.
Submitted May 23, 2021 at 08:29PM by Phynaes https://ift.tt/3fdRyuZ
