Pre-Market versus Normal Market hours trading

Most traders do not participate in the market outside of normal trading hours. If this is you, you may not have any interest in this post. However, if you are curious on a perspective on this follow along here.

To illustrate just how different these 2 time “windows” can be, I bring you the 5 minute chart for $FINL:

Look at the gradual fade starting at 8 am EST to the open time of 9:30 EST. There is a sudden spike in the Accumulation/Distribution indicator as price jumps to 23.25 level. After that, a secondary fade but making a Higher Low. Now just an orderly march up.

I trade frequently in After Hours and certainly focus a lot on earnings reactions plays (both pre & post earnings). There are some good opportunities each day and they don’t always require a trade outside of normal market hours. Sometimes waiting to the open is just fine.

Enjoy the Quarter End, I hope yours was good.

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