Danny Zucco and Sandy loved the Summer Nights, but how have they played out for the market over the years? Below I examine two time periods. As you’ll see, the edge may be shifting. First, let’s look at numbers from the summers of 2000 – 2012 (from the night of June 21st – the night of September 20th).
As you can see, summer was not a great time for the overnight market during this period. But the last two summers have been worth singing about. Here are those stats.
Gross overnight profits are 78% higher than gross overnight losses. And the average night gained nearly 1.5 ES points (with the average winning night gaining over 5.5 ES points). Below is a profit curve showing to see how the edge has played out the last 2 years.
It’s too early to tell if the change in summer attitude is just temporary or whether it is likely to remain a while. But if this summer is anything like the last two, then overnight traders may be getting’ some Summer Lovin’.