16000 crossed 9x today.
That was a nice call on 16K you made earlier. The fed is the only thing between DOW 16k and DOW 3K, where it should probably be about now. I'm pretty sure they'll keep it above 16K today but they're going to be busy tonight wondering what the hell to do in Asia and Europe. Every time the DOW dips, someone is moving significant money out and the fed is pumping money back in using one of its many hidden channels. I wonder where the money that's taken out is being parked.
along with the end of day ramp. altho it those ramps can get even more intense than it was.
it can get truly ridiculous.
Yup. It would be an interesting exercise to look at the last seven years of DOW history and work out on days when it was both down and falling at 3.30pm what you would make if you had invested at ~3.35pm and then pulled out at ~3.55pm.
Back in 2008,someone did that study, or something very similar; buying/selling in the last half hour or so based on some such strategy.
My favorite one; wait for the Warren Buffett rumor to come out hinting that he was going to buy out Hovnanian, or some other tanking home builder. Guaranteed for a 300 point ramp in 10 minutes. Must have happened half a dozen times.
Aside from the manipulations I came up with an option strategy that would take advantage of the volatility of the market opens/closes... essentially capatilizing on the fact that the theta did not price in volatility at market open on days where options were set to expire in 2 to 3 weeks and previous days didnt have crazy volume. Essentially you would straddle both sides and sell the profitable side once you double up or more depending on what time it is.... and then hold the losing side until expiry or you see fit as a free trade... idea is you would hit homeruns with no risk other than the theta of the option but you are only holding for a few hours so the theta vs the potential to have unlimited gains was a win win for me... I did some paper trades and noticed that alot of mornings the theta would drastically change and gave up but I know its a killer strategy as out of 10 days it would give me more than half profitable days (an edge)... I just didn't have the time to really automate it or put a large sum of cash in an exchange to try it out.. would mean getting up at 5am every morning too so I left it for a rainy day... wonder if anyone has had experience with a system like it? I know some start up trading firm in NY was highlighted after it raked in millions for doing something very similar.