Historically most gains happen overnight for $SPY

by Delicious_Reporter21

There is an interesting article back from 2018 that says

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If you had bought the SPY at the last second of trading on each business day since 1993 and sold at the market open the next day — capturing all of the net after-hour gains — your cumulative price gain would be 571%

On the other hand, if you had done the reverse, buying the ETF at the first second of regular trading every morning at 9:30 a.m. and selling at the 4 p.m. close, you would be down 4.4%

I have backtested the same for 2020 and 2021, see the results below. Every day I was buying/selling just 1 share of $SPY.

Year Buy at open, sell at close Buy at close, sell at open
2020 $4.88 $45.42
2021 $36.82 $53.92

Disclaimer: all calculations made using BreakingEquity



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