Dear Peeps, I'm noticing something that I find to be a bit irritating: end of day spikes. I see some equities gently hovering around a certain price a little while before market close. Everything looks calm... until the clock ticks 4pm. Then, out of nowhere, the price spikes up or down, sometimes 1% or more. What gives? How is this possible? Is this dark pool liquidity being declared at EOD? Is some algo running a trade one second before market close? Is it an "after-hours" trade, several seconds after market close? Is this some kind of "on-market-close" order? Thanks, Keith :^)
Clearly there's many that knew the answer the first time they encountered it. If only all of us had that ability. Reckon EOD can be a dangerous time to be trading, especially discretionary trading because the market can be fast, erratic and illogical but as others have mentioned, at times it can also be predictable and exploitable. I guess it comes down to whether you think you can be profitable over the long run trading this time of the day.