Weekly Perspectives July 19, 2020 – The Darkside of Robinhood

Weekly Market Outlook For July 20 – 24, 2020 – All About The Earnings
July 18, 2020
Weekly Market Outlook For July 27 – 31, 2020 – More Volatility Ahead
July 25, 2020
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Weekly Perspectives July 19, 2020 – The Darkside of Robinhood

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Hi traders, 

Here is your weekly newsletter — perspectives on trading and financial markets.

Click here for the previous edition.

 

All About The Earnings 

This coming week is all about corporate earnings.

With so many names going into recent highs the big question is are stocks now priced to perfection or is there still room to the upside?

As we saw this past week in the sell-off with NFLX the market is quick to punish those companies that are not meeting expectations.

Another volatile week ahead so be prepared, have a plan, and manage your risk.

In this week’s video I discuss:

  • The importance of proper risk management holding names going into earnings
  • The VVIX – the volatility of the VIX
  • The correlations between and similiar price action patterns between the indices
  • The rotation out of tech into large cap Dow names – industrials and big pharma
  • The strength in housing stocks
  • The breakout out of the quarterly setup on the TSX


Now watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD MGC BTCUSD EEM and more for the week of Weekly Market Outlook For July 20 – 24, 2020.

 

Nasdaq-100 Comes Nowhere Near Reprising Bubble-Era Surge

Comparisons between U.S. technology stocks’ current gains and their bubble 20 years ago “are somewhat misguided,” according to Michael Batnick, research director at Ritholtz Wealth Management LLC.

Batnick cited the performance of the Nasdaq-100 Index in recent blog post. The Nasdaq-100 soared 929% in the five years leading up to its March 2000.

In the five years ended Thursday, the index rose 147%. “If you’re convinced that we’re in the ninth inning of tech dominance, you should be open-minded to the fact that maybe we’re not,” Batnick wrote.

From April 2015 to today, $1 invested in the Nasdaq-100 grew to $2.42 (price only), compounding at 18.4% a year. In the dotcom bubble, $1 turned into $11.82 (at the peak), growing at 60% a year!

 

10-year average annualized excess returns, selected assets

Even with this year’s selloff in the North American equities markets if you are searching for yield and returns what/where else in the world are you going to place your money?



Source: 
Acadian

 

The Darkside of Robinhood 

It’s been my opinion that the lack of volatility in the crypto markets have in a large part been due to the fact that many retail traders have switched over to Robinhood to get their “trading fix”.

Why trade on shady crypto exchanges when you can easily gain access to the most liquid trading vehicles in the world with leverage in an easy to trade app?

This nice piece by the New York Times discusses how Robinhood leads the way when it comes to selling their customer’s order flow, Robinhood options volume, and of course the victims in the gamification of stock trading.  


 

 

 

 

 

Weekly Perspectives July 19, 2020 – The Darkside of Robinhood

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