Have you ever watched a stock’s movements breathlessly during the trading day, from market open to close, only to realize that bigger movements sometimes happen overnight?

Have you ever wondered what happens when you combine the effects of market sentiment with the overnight anomaly?  Why would you even wonder such a thing?

A recent Seeking Alpha article called this phenomenon the “Grandmother of All Anomalies”, with a hat-tip to “… Gene Fama’s claim that Momentum was the ‘Mother of All Anomalies’… ”

To understand this market behavior, and how it may affect a range of trading strategies (even those not specifically trying to exploit these anomalies), check out the Quantpedia.com Explains video and article: “Market Sentiment and an Overnight Anomaly”.

???? Watch the video for more: https://youtu.be/dSoZ8l09t1I

???? Read the Quantpedia “Market Sentiment and an Overnight Anomaly” article, including a summary of and links to the original research paper here: https://quantpedia.com/strategies/market-sentiment-and-an-overnight-anomaly/

???? Check out the Quantpedia Explains Trading Strategies video series as it evolves here: https://quantpedia.com/quantpedia-explains-trading-strategies/

Via: Changing Market Strategies LLC