Extended hours trading pricing anomalies

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
whodidntante
Posts: 3940
Joined: Thu Jan 21, 2016 11:11 pm

Extended hours trading pricing anomalies

Post by whodidntante » Tue Jan 23, 2018 8:21 pm

I've noticed large price movements in certain ETFs that occur after hours. For today's example, look at VWO Vanguard FTSE Emerging Markets. Behold the spike to 50.70 after hours.
Image

It is not due to news after the close. Maybe it's due to someone fat fingering an order into poor liquidity.

This is just today's example, not the most extreme I have seen. Is this exploitable?

User avatar
Dale_G
Posts: 3084
Joined: Tue Feb 20, 2007 5:43 pm
Location: Central Florida - on the grown up side of 81

Re: Extended hours trading pricing anomalies

Post by Dale_G » Wed Jan 24, 2018 12:40 am

Sure it is exploitable. The guy who sold at about $50.70 did exploit it, the buyer didn't do so well. Maybe the buyer was just anxious, or he/she placed a buy order at the market without looking at the book. Extended hours markets can be pretty thin, so there can be opportunities.

Dale
Volatility is my friend

livesoft
Posts: 62338
Joined: Thu Mar 01, 2007 8:00 pm

Re: Extended hours trading pricing anomalies

Post by livesoft » Tue Feb 13, 2018 4:16 pm

Here is a good one from today for Vanguard Total Stock Market Index ETF (VTI):

Image

Did somebody really sell? Who was the lucky buyer?

Or is it just bad data?
Wiki This signature message sponsored by sscritic: Learn to fish.

Post Reply