Historically most gains happen overnight for $SPY

Sharing is Caring!

by Delicious_Reporter21

There is an interesting article back from 2018 that says

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.

See also  Biden Official "We are imploring Congress to pass the CHIPS Act. It has to happen by Christmas. This cannot take months," [CNN]
See also  At the tippy top of the greatest bubble ever, all kinds of stuff can happen....
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

 

362 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.