Author Topic: Will S&P 500 Retest Recent Low By End of April  (Read 40862 times)

meiroy

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #280 on: June 11, 2020, 08:34:18 PM »
https://www.bloomberg.com/news/articles/2020-06-11/nearly-a-third-of-u-s-renters-worried-about-their-next-payment?utm_campaign=socialflow-organic&utm_source=twitter&utm_content=business&utm_medium=social&cmpid=socialflow-twitter-business&__twitter_impression=true

"Thanks largely to coronavirus lockdowns, 17% of U.S. renters already couldn’t cover their last lease payment -- but that number is dwarfed by the number worried about making the next one.

About 31% of renters responding to the U.S. Census Bureau’s Household Pulse survey in the five weeks through June 2 said they had “little or no confidence” they can make their next payment on time.

By comparison, 11% of households with a mortgage failed to make their last payment and 16% of the survey respondents said they fear they can’t cover the next one.

This could impact consumer spending and the economic recovery."


Should change that "could" into a "would".



SHDL

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #281 on: June 13, 2020, 10:12:10 AM »
Another update on what small traders are up to in the options market:

https://twitter.com/sentimentrader/status/1271783626737401857?s=20

Looks pretty euphoric to me.

stahleyp

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #282 on: June 15, 2020, 12:49:11 PM »
Anyone know how much Robin Hood controls with margin?
Paul

SHDL

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #283 on: June 15, 2020, 06:13:00 PM »
Anyone know how much Robin Hood controls with margin?

I don’t but they seem to have around 10-13m users so you can make some educated guesses. Ok, well maybe not if it’s true that they give their users access to “infinite leverage.”

stahleyp

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #284 on: June 16, 2020, 09:29:51 AM »
Anyone know how much Robin Hood controls with margin?

I don’t but they seem to have around 10-13m users so you can make some educated guesses. Ok, well maybe not if it’s true that they give their users access to “infinite leverage.”

Thanks. Yeah, I'm just trying to understand how Robin Hood is getting access to capital and how much impact they're actually having.

I saw this article yesterday. It was a sad story about a 20 year old that had a margin debt of $700,000 and ended up taking his life.

https://www.marketwatch.com/story/finance-isnt-worth-losing-your-life-over-the-heartbreaking-story-of-a-rookie-trader-who-racked-up-700000-in-debt-2020-06-14

Or this one:

https://www.bloomberg.com/news/articles/2019-11-05/robinhood-has-a-glitch-that-gives-traders-infinite-leverage

I'm trying to understand how prevalent these crazy margin stories are and how Robin Hood is backing that.
Paul

SHDL

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #285 on: June 16, 2020, 01:37:43 PM »
how much impact they're actually having

I tried to get a sense of this too but decided it’s too difficult.

What makes this tricky IMO is that in addition to whatever crazy leverage that Robinhood may be providing their users, there are the actions of other bigger players that are likely amplifying the market impact of small retail traders. For instance if a bunch of small investors try to pile into a hot name there are HFT firms and the like who will try to front run the orders. With options there are dealers on the other side of the transactions who will trade the underlying for hedging purposes. Also there are the price insensitive players like index funds who seem to be making prices more sensitive to small shifts in demand than they otherwise would be. And so on.

Spekulatius

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #286 on: June 17, 2020, 05:42:29 PM »
how much impact they're actually having

I tried to get a sense of this too but decided it’s too difficult.

What makes this tricky IMO is that in addition to whatever crazy leverage that Robinhood may be providing their users, there are the actions of other bigger players that are likely amplifying the market impact of small retail traders. For instance if a bunch of small investors try to pile into a hot name there are HFT firms and the like who will try to front run the orders. With options there are dealers on the other side of the transactions who will trade the underlying for hedging purposes. Also there are the price insensitive players like index funds who seem to be making prices more sensitive to small shifts in demand than they otherwise would be. And so on.

I agree. There seems to be some amplification going on that exaggerate these moves that retail investor tries to ride. today’s fools gold is $CARV as there is trade for Banks serving black communities going on.
Life is too short for cheap beer and wine.

stahleyp

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #287 on: June 17, 2020, 06:02:22 PM »
how much impact they're actually having

I tried to get a sense of this too but decided it’s too difficult.

What makes this tricky IMO is that in addition to whatever crazy leverage that Robinhood may be providing their users, there are the actions of other bigger players that are likely amplifying the market impact of small retail traders. For instance if a bunch of small investors try to pile into a hot name there are HFT firms and the like who will try to front run the orders. With options there are dealers on the other side of the transactions who will trade the underlying for hedging purposes. Also there are the price insensitive players like index funds who seem to be making prices more sensitive to small shifts in demand than they otherwise would be. And so on.

I agree. There seems to be some amplification going on that exaggerate these moves that retail investor tries to ride. today’s fools gold is $CARV as there is trade for Banks serving black communities going on.

Yeah these microcaps moves make sense with robinhood. I just don't know how much RH could be affecting something like NKLA with its $20+ billion market cap though.
Paul

rb

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #288 on: June 17, 2020, 06:15:53 PM »
In the case of Nikola I suspect that few shares are actually available for trading. That's why the borrow is so high on these. So despite its market cap it trades like a microcap.

stahleyp

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Re: Will S&P 500 Retest Recent Low By End of April
« Reply #289 on: June 18, 2020, 06:55:57 AM »
In the case of Nikola I suspect that few shares are actually available for trading. That's why the borrow is so high on these. So despite its market cap it trades like a microcap.

Good point.
Paul