Tesla (TSLA) Continues Its Hot Streak and Closed Higher for Its 10th Trading Day in a Row

Meanwhile, bitcoin (BTC-USD) continues to trade below a $60,000 benchmark, taking a little longer to recover than previous down periods.

Stock market investors might want to consider holding their positions overnight and trading in the morning, according to data.

The S&P 500 (^GSPC) has returned more to investors who bought at the closing bell each day and sold in the morning than to those who traded in the opposite direction, according to Yahoo Finance analysis of data from TradingView.

The strategy would have returned 306% since the October 2020 lows, compared to 283% for those who bought in the morning and sold at night.

The phenomenon is largely explained by the fact that the market is closed for a greater amount of time each day than it is open. At the 9:30 a.m. ET opening bell each day, investors can choose to buy a stock, sell a stock, or hold a position overnight.

Since the market closes at 4 p.m. ET, investors who choose to buy at the opening bell and sell at the closing bell are left holding their positions overnight. Those who choose to buy at the closing bell and sell in the morning are left holding their positions during the market’s closed hours.

On average, the market has risen more during closed hours than during trading hours since the October 2020 lows. As a result, investors who bought at the closing bell and sold in the morning have captured more of the market's gains.

This trend has been consistent throughout the bull market, and it is not limited to the S&P 500. The Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) have both returned more to investors who bought at the closing bell and sold in the morning.

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