top of page

Biggest Stock Market Divergence in 2024 and 7 Year Russell Day Trade Bear Market

Capstone Trading


We continue our analysis of this phenomenal divergence between the difference in the overnight trade versus the day trade.

Through Friday's trade, going long at the day session open in the Nasdaq futures at 9:30 am EST and selling to close your position at 4:00 pm EST would yield -636.5 points while going long at 4:00 pm EST and exiting at 9:30 am EST would yield 4123 points. The net gain for the Nasdaq futures and most stock indexes has all been in the overnight session in 2024.


There are three potential patterns from here. Does this indicate a market reversal or a mean reversion for more day trade trends.


It is interesting to examine the potential effects of 0 DTE options on market dynamics and how new products can change the way markets trade. Considering that most of the option sellers are institutional traders who protect their positions intra-day.


It would be interesting to see what would happen if day trade margins remained in effect while the market was open during the night session or if day trade margins no longer existed. In either case, more consistent margins would align with the actual trading session.


Discussions on 22 hour equity market sessions could extend this pattern of how all gains or trends in general are overnight. Each day the market opens and the financial media is reporting at the exchange and day traders from around the world actively trade.


Its interesting to note that the net gains all occur overnight in 2024.


Another interesting note is the day trade bear market in the Russell 2000 for the last 7 years. The net results of the day session the past seven years has been negative in the Russell 2000 as we look back to November 2017.


48 views0 comments

Recent Posts

See All

Comentários


EXCLUSIVE MARKET AND STRATEGY UPDATES

 Capstone Trading Systems © 2024. All Rights Reserved.

​

U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

​

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

bottom of page