The stock market is broken.

@sammystockz

51.0K followers · usually 5.4K views a post

Views

131.9K

Likes

4.4K

Comments

92

Shares

516

SoundTikTok sound · original sound - mateusmuscle

Promoted product

Micron $MU

Why it worked

The video leverages a surprising and counter-intuitive financial insight, presented with clear data visualizations and a relatable explanation of market mechanics, to capture viewer attention and encourage engagement.

Summary

The video explains a stock market phenomenon where buying at market close and selling at market open, specifically for Micron $MU, has historically yielded massive returns, while the opposite strategy has resulted in significant losses. This pattern is attributed to pre-market and after-hours trading driven by news and hedge fund activity, leading to inflated stock prices before market open that then correct.

Structure

1Introduction of the stock market anomaly with Micron $MU
2Demonstration of the profitable buy-close/sell-open strategy
3Demonstration of the losing buy-open/sell-close strategy
4Explanation of the phenomenon's prevalence across global markets

Original caption

Is this the new strategy? #stocks #invesring #finance

More from @sammystockz

Product placement

Micron $MU: This is a stock that the video analyzes. It is used as an example to demonstrate a trading phenomenon. Removing it would change the video's topic. It ACTS. X.com: This is a social media platform where the video is posted and where a research paper is linked. Removing it would not change the video's topic. It merely APPEARS.

Call to action

Remember this next time you trade

On-screen text

The stock market is broken. If you bought Micron $MU stock every day at market close and sold at market open since 1990, you'd be up 138,330,343% But, if you bought at the open and sold at market close you'd be down 99.92% in the same time IF YOU BOUGHT MARKET CLOSE EVERYDAY AT MARKET OPEN SINCE 1990 YOU'D BE UP OVER 138,000,000% DID THE EXACT OPPOSITE IT BOUGHT AT MARKET AT THE CLOSE EVERY SINGLE DAY 99.2% BUT THE CRAZY WEIRD PHENOMENA ISNT JUST HAPPENING TO MICRON A RESEARCH PAPER FOUND THAT THIS SAME ABSURD PATTERN SHOWS OF OTHER STOCKS ACROSS GLOBAL MARKETS WHY IS MIND BLOWING MAKE MARKET MOVING ANNOUNCEMENTS LIKE EARNING REPORTS THIS IN PRE MARKET OR AFTER HOURS TRADING NEWS COMES OUT HEDGE FUNDS TRADE THE STOCKS AGGRESSIVELY BEFORE THE MARKET EVEN OPENS PERIOD OF TIME LIQUIDITY IS LOW WHILE EXCITEMENT IS TIME HIGH CAUSING SOMETHING WILD TO HAPPEN AND HIGH DEMAND STOCKS GET VERY INFLATED GOING INTO MARKET OPEN BACK DOWN TO EARTH ONCE LIQUIDITY SUPPLY RETURNS REMEMBER THIS NEXT TIME YOU TRADE

Transcript

If you bought Micron $MU stock every day at market close and sold at market open since 1990, you'd be up 138,330,343% But, if you bought at the open and sold at market close you'd be down 99.92% in the same time If you bought market close everyday at market open and sold at market open since 1990 you'd be up over 138,000,000% Did the exact opposite it bought at market at the close every single day 99.2% But the crazy weird phenomena isn't just happening to Micron A research paper found that this same absurd pattern shows of other stocks across global markets Why is mind blowing When companies make market moving announcements like earning reports they do this in pre-market or after hours trading When the news comes out hedge funds trade the stocks aggressively before the market even opens Period of time liquidity is low while excitement is time high causing something wild to happen And high demand stocks get very inflated going into market open Then they come back down to earth once liquidity supply returns Remember this next time you trade