The Rotation Game - it's like musical chairs of the markets, did you reserve a chair with a hedge?
Nasdaq is hanging on by a thread, this coming week earnings could derail everything.
Bonds are @ 181 and the FED is coming!
3 weeks inside the Expected Move, you should be afraid and BUYING premium!
SPX Expected Move
--last week-- 74.44 (expected move)
--next week-- 76.81
1 Comment
Michael Randall
July 24, 2020The number of DARTs - with zero (or lower price for options) commissions I am trading smaller and more often. I used to buy 400 shares at once, now I might break entry up into 4 separate trades. Plus - more than 70% of stocks are priced lower than they were 6 months ago. So 4 trades of 100 shares of a $50 stock looks like a big increase over 1 trade of 400 shares of a $60 stock - but it's not. Would be useful to compare nominal value of daily trades then and now. Perhaps another way to think about it is DARTs have doubled / tripled - but brokerage firm revenues / earnings have only increased 5% - 15%. Was the pricing for order flow predicated on the number of shares / contracts or was there a ticket charge component?
The increase in number of accounts is meaningful - but I would be interested to know what percent of new accounts are add-ons by existing customers. I know people who opened their first account ever in February / March / April. But I also know people who funded a separate account to use to teach their kids how to trade while school was closed.