Forget The 3:30pm Ramp, Stock Gains Are All About The Night Shift

Tyler Durden's picture

Just 2 years after we first noted it, the mainstream media has become fascinated with the performance of stocks in the last 30 minutes of the US cash session - the 330 Ramp! But, as with anything that becomes widely known (apart from "never start a land war in Asia" and "stocks are always cheap"), the exuberant last 30 minute ramp has been superseded by another... Welcome to The 2am Europe Open Ramp.

 

 

As Nanex's Eric Scott Hunsader notes, a stunning 22% of all S&P 500 futures gains have occurred between 2am ET and 3am ET.

But wait, it gets better, because going even further back reveals that in the past decade 49%, or half of all stock gains, have taken place in just that one late hour, right before Europe opens for trading!

The offset? the 7:00am-8:00am block has shown the consistently worse performance in the past decade.

So with fundamentals not working since central banks took over, why not do a chronopair trade, going long ES at 2:00am Eastern for one hour, offset by a short in the market between 7 and 8:00am on every trading day.

It may not beat the artificial market, but with a 10 hour work week just think of all the extra free time.

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JustObserving's picture

Yelllen says that is just a random event in the free and fair markets of the West though the chance of it occuring is about 100 trillion to 1.

American exceptionalism at its finest.

green sheen's picture

Yellen will be surprised to learn some scams can't survive the 21st century
https://youtu.be/68V1-2OGeYw

Manthong's picture

Oh, f me..

It’s not like the Fed f’d the whole global price discovery schtick with a half trillion of Euro swaps just after the first installment of 1.7 trillion LTRO in 2011.

..but what do I know anyway…..

Manthong's picture

could be worse..

could be living near airport in Donetsk......

SoilMyselfRotten's picture

I'm assuming the gain comes from front running the US stock market open? 

Manthong's picture

awshit..

there ain't no frontrunning nuttin' if you ain't close to the source.

NoVa's picture

I always trade my stocks between 2am and 3 am EST, from dial-up modem in my parents basement.

 

/s/

NoVa's picture

really.  drinking Mt Dew, playing vid games... and trading

 

 

ebworthen's picture

2:00 a.m. - 3:00 a.m. is the lowest traffic on the Internet, when the co-located super computer algo traders really start "yelling and screaming" in the "pits" of the market.

BTW - what time would that be in Shanghai?

green sheen's picture

Maybe six million to zero

Bill of Rights's picture

We managed to get silver back under $16 so all is well...

Manthong's picture

hmm..

ok, so cash is trash and so is the only currency sanctioned by the Constitution of the United States of America.

Bunghole's picture

I guess I need more cocaine so I can stay up and watch the late show.

Manthong's picture

you might want to upgrade to crack

..or you can rave naked at the TV with meth. 

Serfs Up's picture

"""Markets!!"""

Father Lucifer's picture

No technicals working either.

Rainman's picture

Chronopair ? ... no thanx, I already work less than 10 hours a week and can't handle the overtime pressure.

Kaiser Sousa's picture

the Silver chart is cracking me up....

thanks u mother fucking cocksuckin banker fucks...

since u insist on keepin the phony paper price RIGHT AT 15.99 i'll buy those Allen Edmond golf shoes now and wait til the 1st of the monty to buy some more real money at the sale prices....

http://www.kitco.com/charts/livesilver.html

death to the MoneyChangers......

bentaxle's picture

We insomniated some folks

vegas's picture

A perfect time to ranp US stocks as liquidity is low and nobody in the US is paying attention; sell it back to them when they wake up and go play golf.

 

www.traderzoo.mobi 

chinaboy's picture

Does that mean whoever command and controls the market leave all upside to themselves?