From tonight's Midas

Food for thought…

GLD Day/Night Price Movements

What are the odds of this happening in a freely traded marketplace?

GLD (the gold ETF) first traded 11/18/04 and closed that first day @ $44 (nearest dollar). GLD closed @ $111 on 01/08/10. There were almost 1300 trading days on the NYSE in that interval. The net sum of all the overnight price changes (NYSE closed = today opening - yesterday closing) was $66. The net sum of all the daytime price changes (NYSE open = today closing - today opening) was $1. Virtually all the upward price movement in GLD occurred overnight when the NYSE was closed. During 2009, the numbers were $2 upward when the NYSE was open during daytime trading, and $18 when the NYSE was closed overnight.