September 20, 2017

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About That Friday Closing Ramp: Something Snapped In 2016



zerohedge.com / by Tyler Durden / Mar 3, 2017

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It’s Friday, which means Wall Street is patiently waiting for what has become a novelty tradition in close of week trading: a late day ramp, starting around 3:30pm and picking up speed into the close.

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There have been various explanation for the ramp, most recently from JPM, which proposed that at least in recent months it has been the result of retail buying of ETFs, which in turn rebalance at the end of the day, creating a self-fulfilling buying prophecy and a last 30 minute buying spree to balance out positions. Others have suggested that foreign buyers take advantage of the increase in liquidity at the end of day: per JPM, so far in 2017, 37% of the NYSE trading volume took place during the last 30 mins of trading.

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