24 Hour Markets...COMING SOON
Published: 2024-11-07
Status:
Available
|
Analyzed
Published: 2024-11-07
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker believes that brokers like Robin Hood and Charles Schwab are already offering 24-hour trading, and that the NYSE should adopt this model.
"I really think they should have just gone for the full 24-hour day that Robin Hood Charles Schwab and so many Brokers are already offering"
Pending
The increasing popularity of stock market trading globally is compelling more brokers to offer 24-hour trading options.
"the expansion from Robin Hood to other Brokers um has happened fairly quickly right now as trading in the stock market is becoming and has become increasingly popular both in the United States and internationally more Brokers are feeling compelled to offer 24-hour trading"
Pending
Charles Schwab is expanding its 24-hour trading to include S&P 500 stocks, NASDAQ 100 stocks, and numerous ETFs.
"so now Charles Schwab has made a similar announcement they said this was um this is Robin Hood talking about their 24-hour markets and then Charles Schwab says here we go we're going to sign L expand 24-hour trading capabilities to include stocks in the S&P 500 NASDAQ 100 hundreds of additional exchange traded funds"
Pending
Companies may strategically release negative news in the middle of the night to minimize its immediate impact on traders.
"companies will be inclined to put out bad news in the middle of the night hoping Traders will forget it"
Pending
Regulators would likely view the consistent release of bad news in the early morning and good news during prime trading hours as a problematic practice.
"if all bad news headlines were released at 2 a.m. and all the good headlines came out at 7: a.m. Regulators would take issue with this practice I think that that would be a problem"
Pending
The speaker speculates that if the NYSE is approved for 22-hour trading without pre-market or after-hours limit up/limit down rules, they will also remove the 20% trading restriction.
"I think they're going to have to also take away this 20% restriction that's that's my guess"
Pending
During extended hours with low liquidity, a large order from an investor like Warren Buffett could significantly move the entire market due to a lack of available sellers and the absence of stop or GTC orders.
"currently there's a limit to large moves during extended hours there is less liquidity and the problem with that is let's say you had someone like Warren Buffett who's got you know $350 billion dollar of cash let's say at 1:30 in the morning he took a couple billion dollars and started buying the S&P 500 there's not going to be a lot of sellers at that time of day there's no stop orders there's no the good till cancel orders are not on the market so there be the potential that a really large order could move the entire Market substantially"
Pending
The speaker predicts that the 20% trading restriction will eventually be removed once major exchanges adopt extended hours trading, as inconsistent rules across brokers would not be sustainable.
"my guess is it's going to go away eventually once the exchanges come on board they're going to kind of set the rules because it it wouldn't be allowed for one broker to say we're no longer offering trading when other Brokers will continue allow trading"
Pending
Stop orders, market orders, good till cancel orders, and options trading are not expected to be available during extended trading hours as the market infrastructure is not currently set up for them.
"there will continue to be no stop orders no Market orders no good till cancel orders and no options trading during these extended hours because that's currently not the way the the market has been set up"
Pending
The speaker anticipates that news released at 1:30 AM could cause stocks to spike and appear on momentum scanners, but questions how many traders will be actively watching at that hour.
"I think we could start seeing that all of a sudden 1:30 in the morning there's you know a bunch of Traders jump on a stock that starts spiking it hits the high day momentum scanner it goes from $2 to three to four to five but how many people are really sitting and watching at one 1:30 in the morning"
Pending
Sustainable volatility will be driven by news, and companies will need to decide to release headlines outside of traditional trading windows (7:00-9:30 AM and 4:00-5:00 PM) and instead opt for later hours like 8:00 PM, 9:00 PM, 10:00 PM, or even 2:00 AM.
"but what's ultimately going to create sustained and Lasting volatility will be the news so it's going to be the companies that themselves have to decide I'm not going to put out news during the 7:00 a.m. to 9:30 window or the 400 P p.m. to 5:00 P p.m. window we're going to start putting out news headlines at 8:00 at night or at 9 or 10:00 or whatever the case is 2 in the morning"
Pending
It's unlikely companies will shift news releases to very early hours, as they aim for sustained surges on volume, particularly small-cap companies needing high volume for shelf registrations to raise capital.
"I don't see that being very likely because these companies they want to put out news not just to create a short-term Spike and then the price comes right back down they want to see their company to continue to Surge up on volume especially small cap companies because what a lot of these small cap companies are doing is they're putting out news headlines they often have a shelf registration and they need that high level of volume to support their ability to raise more Capital"
Pending
While releasing news in the middle of the night may not be popular, international companies listed in the US (e.g., from Australia or China) could potentially release news at 2:34 AM, with trading commencing at 4:00 AM.
"putting out news headlines in the middle of the night I don't think it's going to be super popular but again there's a lot of companies listed on the US market that are Australian we've got a lot of companies that are from China that are on the US market So currently those companies could put out news at 2:34 in the morning and trading begins at 4:00 a.m."
Pending
The impact of good news on a stock is limited if there are not enough traders present to capitalize on the news event.
"even if the stock had good news if there's not the Traders there to buy that news event what does the news really mean"
Pending
Even with fully integrated 24-hour markets, peak volatility will likely occur during specific windows when companies are most likely to release news and when traders from US, European, and Asian markets are simultaneously active.
"even if we become fully integrated with 24-hour markets I think there will continue to be Windows based ultimately on when companies are most likely to put out news which will be based on when people are most likely to be trading in the markets and so that's going to be based on certain times when you're going to get us Traders west coast East Coast West Coast Traders European Traders and Asian Traders all together for that little window of the day that's when the magic is going to happen that's when we're going to see the peak of volatility"
Pending