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So am I understanding this correctly that massive algorithms are shorting stocks first thing in the morning - like in the first few seconds of trading - and the

So am I understanding this correctly that massive algorithms are shorting stocks first thing in the morning - like in the first few seconds of trading - and then consolidating their positions before close. They basically can do this regularly essentially guaranteeing returns that the rest of us aren't able to take advantage of. And the SEC's lack of enforcement has allowed this practice to continue for the past decade or more. Is this the "strategy"?

notahacker 4y ago
More or less the opposite: stock sold off cheaply in the evening got sold for more in the morning. Probably algorithms involved in selling, but more likely they were prepared to take lower returns to not risk holding AIG overnight rather than as some sort of market manipulation strategy But the main factor in the divergence in that chart in 2008-9 - as one of the comments points out - is that AIG announced a lot of bad news during the financial crisis during the daytime but never collapsed overnight.