So that's it! "...the post-closed meltup phenomenon has been one of the most popular and recurring strategies in equity markets, with many traders selling spoos when the day session begins and then re-buying at the market close in pursuit of scarce alpha..." So that is why the phenomenon has been happening. These blowhards have been selling the cash open and buying the cash close! Fer frack's sake!
I like that article - I long wanted to see what the markets do on average hour by hour. It always "felt" to me that around ~2:00 (Houston time, market closes at 3:00 Houston time), the markets tend to start going up more than other hours of the day. And then apparently they just keep going up and up on average at night. Consistent with my testing. So I think the article just further proves the point, putting tax considerations aside, if you want to maximize your returns, start buying late in the trading day, hold overnight, sell first thing the next morning, come back to buy in an hour or two before close. Rinse and repeat and PROFIT.
Doing that alone will not make you money. However, using the info in the article as a starting point can yield some very profitable results.
Then be the first person ever to do it with real money. Be a standard-bearer! Lord knows Rick won't do it.
So nobody has the guts to go long at ATH? Really. No surprise, considering the overnight action. For how many more months is anyone here ever going to not try it? I've been in the latest trade for 6 weeks. Gutless punks. Nobody really believes in the markets here. That is why they day-trade. I'll take my hat off.