Stocks & Commodities V. 29:6 (52): Q&A by Don Bright
END-OF-DAY CLOSE IMBALANCES
Mr. Bright, I attended one of your classes last year and found it very helpful. One of the things you taught was how to read and respond to end-of-day market close imbalances. If I recall, you said these imbalances were put out twice during the last half hour of trading. Is that still the case? Have there been any changes to your thought process regarding how to treat them? —Edwin G.
Don, I want to thank you for your column and your help on the various Internet boards. You had posted at some point that there had been major changes in the market on close imbalances and even a new order type. Can you expand on this a bit? —Tradercat1975
Let me go into more detail on the end-of-day strategies and specifically the market on close imbalance. To start with, during the day, many institutions and other trading entities submit orders to either buy or sell shares of specific stocks, with pricing to be the last trade of the day — basically, a market order for the final print each day.