What are the 8AM Premarket Spikes?

SunTrader said:
News often released @ 700am ET?
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There should be an entire year of high school with a class dedicated to understanding time zones as a requirement for graduation, and only A+ scores are considered passing grades, or else you are left behind for a year. This will repeat every year until A+ is reached. This can substitute for the mandatory phys. ed. requirement for graduation.
 
fxRichard said:
If you look at things such as QQQ, SPY and many stocks you'll see a spike at 8am. The last 2 days I had orders out (granted not sitting at ARCA or NASDAQ) but through a smart order router provided by our broker. Both days price traded through and past my limit order during this spike without getting any fills. I can go to a tick chart and see every price movement but my orders were not executed until much later when price came back to this level.

Is there something else going on at 8am I'm not aware of or does the fact that my order "may" not be sitting directly at the exchange have to do with the execution issue? I'm getting direct market access added to our account today and will be trying again tomorrow sitting at the exchange. Just wondering if anyone knows something I don't and why the price fluctuates at this time. I assumed it had to do with the pre-market opening for many other brokers....
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When I started trading last year I wanted to be ready for that market open spike (or 8 am pre market spike, that one because TOS and other brokers open at that time) when I made the same assessment as you.
That's because the close price is modified by after market and pre market trading, so in effect the close price is no longer the open price and when you place your order, you're...out of order. That got me so frustrated that I opened an account with Webull, which is one of the very few full after/pre market trading platforms. Being in Singapore, 4 am is the middle of the afternoon for me and convenient. I used that account to pretty much trade the pre market to 30 minutes after open and did pretty well. Eventually I shut down my Webull account due to restrictions from trading outside the US, but also because I wasn't comfortable that Webull is a China based company.
As I've complained before, stock market hours are like union factory work... 9:30-4:00. Imagine a 24/7/365, where anyone from around the globe could trade at their convenient hours... :wtf:
 
Thanks for the replies guys. I actually have a snapshot of the time and sales from this morning during that time. it looks like many of these trades were coded d for distribution, not sure what that means. Are these late prints from a larger block trade? Are these tradable?
 
JamesJ said:
I can confirm, they are late prints from premarket trading between 4am and 8am.

The paid orderflow ones for example, that were executed by citadel vs. client at brokerage allowing early premarket trading (e.g. Webull).
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No, they are not late prints from 4am - 8am trading as you can see in this chart. It appears as though they may be from Thursday's closing price in this example.
upload_2021-1-23_13-2-19.png
 
Math_Wiz said:
No, they are not late prints from 4am - 8am trading as you can see in this chart. It appears as though they may be from Thursday's closing price in this example. View attachment 249763
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Ok, in spy there seem to be some trades at previous days closing. Probably pre agreed trades.
In stocks those candles usually only spread across premarket range.
 
Yes I'm just trying to understand exactly what is going on. I'll post pictures of the time and sales when I'm back to my computer but these prices are tagged as D for distribution. A simple Google search will give you a very non descriptive definition, trying to find more clarity.
 
Good question, I'm curious too, there's always spikes at exactly that time daily in SPY etc.... looks like premkt equivalent of moo/mkt on open order flow but at 8 vs 930
 
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