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The Times is two months late here

So, The Times decides to tell us about night trading of shares:

The opposite, the day effect, is where you buy stocks just after the market opens and sell them just before it closes.

The night effect has returned 363.6 per cent since November 1999, based on the buying and selling of the SPDR S&P 500 exchange traded fund (ETF), according to the fund house NightShares. The day effect has gained just 0.3 per cent during that time.

Yet simply holding the SPDR S&P 500 ETF would have beaten the night effect, returning 364.9 per cent.

Tsk, two months late, Matey, two months late:

There’s a weird theory out there, that stock markets don’t in fact make money when they’re open. It’s only when they’re closed that prices move enough for us investors to be able to cash in. The obvious reaction, if this is true, is for us to be trading the S&P 500 (US500) overnight. Or possibly the mini-futures, or something like an S&P 500 ETF. The specific instrument used will depend upon risk appetite, trading costs, size of position and so on.

1 thought on “The Times is two months late here”

  1. An ETF of the S&P500 – primary (dominant? only?) exchange is the NYSE.

    Shuts 4pm local time. What’s the time in California?

    Does the same effect occur with the MIB, CAC or DAX? Probably not. FTSE or Nikkei? May be.

    Global MSCI index ETFs? Hmm. Buy NY close, sell TSE open?

    Would the day effect be stronger for a China index traded solely in India?

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