What Drives After-Hours Trading?

uexkuell · Feb 11, 2010

if you look back the last 6 - 9 months on the ES, you will note,that big up moves happened overnight. FED is buying. (or some agency)

This is the mindset that brought down US.

Some people still don't recognize that there are places called Europe and Asia that have an influence on markets.

TheAngryHermit · Feb 11, 2010

Quote from sprstpd:

Combination of stupid people who don't understand how illiquid the afterhours market is plus smart people who have insider knowledge or get upgrade/downgrade news in advance or frontrun Cramer's picks before he spouts them on television. They all drive the price in afterhours.

You think the camera man texts Cramer's picks to his buddy before the show airs? LOL That would be a GREAT gig...until you were caught!

Dustin · Feb 11, 2010

That wasn't after hours trading...they were pre-arranged trades that could have taken place hours prior to the print. You cannot participate in them. Notice the "Conditions" column...both had special tags.

sprstpd · Feb 11, 2010

Quote from TheAngryHermit:

You think the camera man texts Cramer's picks to his buddy before the show airs? LOL That would be a GREAT gig...until you were caught!

About a year ago, the correlation between afterhours movement and Cramer's pumps was uncanny. On almost every tout, somebody would put in orders for the stock he was about to pump about 5 minutes in advance. I haven't noticed anything like that recently though.

JRL · Feb 11, 2010

Quote from Dustin:

That wasn't after hours trading...they were pre-arranged trades that could have taken place hours prior to the print. You cannot participate in them. Notice the "Conditions" column...both had special tags.

Thank you.

What is meant by "special tags"? Are they restricted to a specific type of investor/insider?

JRL · Feb 11, 2010

Quote from spindr0:

Here's an extreme example. SNS closed at $343.43 which was the high for the day with a B/A of $342.12 x 343.41

Right now, it's $336.02 x 378.48

If someone hit the ask, the print would be $378.48 yet barring anything special news in the AM, it would open near $343. It's not a gap, just dumb money getting ripped.

Chances are , your MGM $10.72 print at 4:02 PM was no more than this happening.

Appreciate the response - wasn't the case in my example, as Dustin pointed out, but it's nice to learn of the typical cause.

Thank you.

Lucrum · Feb 11, 2010

Quote from JRL:

... The MACD line just curved upward slightly, the %K line just crossed over the %D line in a sharp upturn, although the CCI indicator would suggest that it's overbought at $10.81 (+478.36).

You poor bastard.

loufah · Feb 11, 2010

Quote from sprstpd:

About a year ago, the correlation between afterhours movement and Cramer's pumps was uncanny. On almost every tout, somebody would put in orders for the stock he was about to pump about 5 minutes in advance. I haven't noticed anything like that recently though.

There were articles a couple years ago talking about how the show worked. It's taped 1.5 hours in advance, and people calling in get to hear the taping while they're on hold. They're supposed to agree not to act on what they hear.

trader#21 · Feb 11, 2010

For scalpers after hours earnings stocks can give significant opportunities.

moarla · Feb 12, 2010

Quote from uexkuell:

This is the mindset that brought down US.

Some people still don't recognize that there are places called Europe and Asia that have an influence on markets.

lol
ante crisis this was not the case. go study charts