Bloomberg: “Unbeatable Overnight Gains Fuel Theories on Who’s Driving Them”By admin_45 in IN THE NEWS
Excerpt from Bloomberg quoting DataTrek's Nick Colas:
.... "Whatever the reason, outsize overnight gains tends to attract attention following downturns and rebounds, according to DataTrek Research’s Nicholas Colas.
“It’s been an on-again, off-again topic over many years,” Colas said. “People notice it during periods of volatility and it’s counterintuitive -- the U.S. market is open from 9:30 am to 4pm, that’s when the moves should be"....
.... "That theory holds water with DataTrek’s Colas, who contends that the relationship is likely hardwired into trading algorithms.
“The underlying reality is there’s a strong market making component in the system,” Colas said. “I assume that every good high-frequency algo, every fundamental algo has this embedded in it"....
Read the full article here on Bloomberg!