So easy once again making free overnight money. Don't waste your time trying to scratch out meager gains during the U.S. session. Just buy the cash close get some sleep and wake up to profits. The range will continue to dry up during the U.S. day session.
Midnight rally
- Thread starter Rickshaw Man
- Start date
Until you wake up to see the indices down 1-2% overnight. Then what do you do? You sell the cash open and many times watch the market regain all those ON losses during the day.
Or yesterday. You bought the cash close, sold the market open, you were at BE or barely in profit. It goes both ways.
You do exactly as I said, no changes, ever. If, on average, markets go up overnight significantly more than they do during the day, then you want to have at least a little more working at night (all this is if you expect that trend to continue of course). You buy right before close, and sell right after open, each and every day, no matter what the overnight does. If markets are down 1 or 2 percent overnight, you take that hit and still sell on open knowing, in the long run, you will still come out ahead.
Or you just buy at the close, and sell in profit no matter how long it takes. The end result is similar, but you have only one transaction cost instead of dozens per month. Mr. Rick doesn't really believe in his thesis, because he never posts in a down trend. So neither should you.
What are you saying with your first sentence? That you buy at close, sell only when you've had a profit? That is a different deal, and if you truly believe the night is going to give you better returns over time you'd prefer to have more in at night, less in during day, on average.
I will test the overnight hypothesis, hopefully tonight, and post results.
Be sure to keep track of drawdowns, that is very important.
Ya. Take all that money you made shorting GME and go long everynight into the close and sell in the morning.
You and Rickshaw are two peas in a pod. World class decisions & advice for days.
Ok folks your best bet is to ride up the overnight drift higher. Don't waste your time fighting for crumbs during the summer day sessions. Been doing this for a while. Sure earnings and monthly employment data, also CPI will give us short squirts up and down.
Its just easier to buy the close, sell the open. Then go golfing fishing whatever.
Its just easier to buy the close, sell the open. Then go golfing fishing whatever.