Nasdaq is heading toward 23/5 trading and tokenized stocks are pushing selected names toward 24/7 trading.
I believe most people are looking at this as a convenience story. Being able to trade US stocks from Asia timezone and react to news immediately. No need to wait for Monday.
In my opinion, I think the bigger change could be what it does to the way price moves.
Take the opening range breakout (ORB) system for example. Today, 9:30am matters because a huge amount of buyers and sellers arrive at the same time. Overnight news gets processed quickly, volume jumps, and the market establishes a fresh range. But I can see the 9:30am open gradually becoming less about price discovery and more about liquidity confirmation.
If s stock has already been trading for 15 hours before New York wakes up, a lot of the overnight move may already be established. The question at 9:30am becomes whether the much larger pool of regular session buyers / sellers agrees with it.
Same thing for catalyst traders. An earnings surprise or major announcement today can create a huge gap and an episodic pivot the next morning. In a more continuous market, some of that gap could get traded away before the regular session even begins.
The catalyst does not disappear but the move just starts earlier. Episodic pivots could become multi-session moves instead of one giant gap. ORBs could become confirmation trades.
My guess is the technical setups will not vanish. The important or key levels may just stop being defined entirely by the opening bell. I could imagine traders eventually paying more attention to things like the Asia/Europe session highs and lows.
GN fellow Nerds! 🤓
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So I woke up and saw this juicy entry on $AKA 👀
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