This paper examines the dynamics between overnight noise traders and daytime arbitrageurs, measured by AB_NR from Akbas et al. (2022), which significantly differ in the predictability of future stock returns with the degree of nearness to 52-week high prices. We show that if stock prices are far from the 52-week highs, there is a perception of greater potential for price increases, leading to tremendous upward pressure on prices by overnight noise traders. As a result, daytime arbitrageurs overcorrect, leading to high AB_NR stocks being undervalued and offering the potential for increased future returns. On the other hand, for stocks near the 52-week highs, overnight noise traders perceive less room for growth and exert less pressure on prices. This results in less overcorrection by daytime arbitrageurs, leading to high AB_NR stocks being less undervalued and offering weaker return predictability. Our findings provide a fresh perspective on the psychological barrier of investors during intense tug-of-war.