It’s 2 P.M. in New York, Time to Buy
Stocks: Technical Analysis
By Jeff Kearns
March 26 (Bloomberg) -- U.S. stocks have their best
intraday returnsstarting at 2 p.m. in New York
as institutional money managers begin buying, according to an
analysis by Bespoke Investment Group LLC.
Since September, the
Standard & Poor’s 500 Indexhas on average
risen only during the 2 p.m. and 3 p.m. hours in New York, said
Bespoke, a Harrison, New York-based firm that manages money for
wealthy investors and provides financial research to institutions.
Returns were 0.14 percent between 2 p.m. and 3 p.m., and 0.05
percent from 3 p.m. through the close. The worst performance was
between the previous close and 10 a.m., according to Bespoke.
“This could be a sign that the institutional money has been
doing a lot of buying,” Bespoke co-founder
Justin Walterswrote in a report yesterday.
“It’s a common belief on Wall Street that the institutional money
(smart money) trades at the end of the day, while the individual
money (dumb money) trades at the beginning of the day.”
Individual investors have also spurred the market during the
past two weeks, helping the S&P 500 rally as much as 22 percent
from its 12-year low on March 9, Walters said.
Since that nadir, the best returns have occurred before 10 a.m.,
when the market climbed 0.77 percent from the prior day’s close.
The next best returns have been during the 2 p.m. hour, when stocks
added 0.33 percent, according to Bespoke, founded by Walters and
Paul Hickeyafter they left Westport,
Connecticut- based Birinyi Associates Inc.
Goldman Sachs Group Inc. said in a separate note on March 24
that the S&P 500 had returned a total of 35 percent between 2
p.m. and 4 p.m. since the start of 2008. The benchmark has slipped
a cumulative 54 percent from the open of U.S. exchanges through 2
p.m., according to a note from Goldman’s
Peter Berezinand
Roman Maranets.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
FWIW
Posted by ralph on 27th of Mar 2009 at 01:56 pm
It’s 2 P.M. in New York, Time to Buy Stocks: Technical Analysis
March 26 (Bloomberg) -- U.S. stocks have their best intraday returnsstarting at 2 p.m. in New York as institutional money managers begin buying, according to an analysis by Bespoke Investment Group LLC.
Since September, the Standard & Poor’s 500 Indexhas on average risen only during the 2 p.m. and 3 p.m. hours in New York, said Bespoke, a Harrison, New York-based firm that manages money for wealthy investors and provides financial research to institutions. Returns were 0.14 percent between 2 p.m. and 3 p.m., and 0.05 percent from 3 p.m. through the close. The worst performance was between the previous close and 10 a.m., according to Bespoke.
“This could be a sign that the institutional money has been doing a lot of buying,” Bespoke co-founder Justin Walterswrote in a report yesterday. “It’s a common belief on Wall Street that the institutional money (smart money) trades at the end of the day, while the individual money (dumb money) trades at the beginning of the day.”
Individual investors have also spurred the market during the past two weeks, helping the S&P 500 rally as much as 22 percent from its 12-year low on March 9, Walters said.
Since that nadir, the best returns have occurred before 10 a.m., when the market climbed 0.77 percent from the prior day’s close. The next best returns have been during the 2 p.m. hour, when stocks added 0.33 percent, according to Bespoke, founded by Walters and Paul Hickeyafter they left Westport, Connecticut- based Birinyi Associates Inc.
Goldman Sachs Group Inc. said in a separate note on March 24 that the S&P 500 had returned a total of 35 percent between 2 p.m. and 4 p.m. since the start of 2008. The benchmark has slipped a cumulative 54 percent from the open of U.S. exchanges through 2 p.m., according to a note from Goldman’s Peter Berezinand Roman Maranets.