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Retail traders propping up the market
Posted on 5/20/25 at 7:44 am
Posted on 5/20/25 at 7:44 am
quote:CNBC
Retail buyers came out in full force in the trading session following Moody’s downgrade of the U.S. credit rating, continuing their dip-buying pattern throughout recent volatility.
Individual investors bought a net $4.1 billion worth of stocks on Monday from the open through 12:30 p.m. ET, the largest level ever for the time of day and a more than 11 standard deviation move, according to data from JPMorgan’s trading desk. They closed the session with $5.4 billion net purchases.
The retail cohort was also responsible for 36% of total trading volume Monday, marking another record, JPMorgan said.
3
Posted on 5/20/25 at 9:16 am to bigjoe1
I forget if it’s 2026 or 2027 but after thst, all newly established 401k plans are required to have both automatic enrollment AND automatic contribution increases of 1% every year up to like 10% or something.
So in the long run, dips in the market will be smoothed out more and more by enforced buying.
So in the long run, dips in the market will be smoothed out more and more by enforced buying.
Posted on 5/20/25 at 12:01 pm to bigjoe1
quote:
Individual investors bought a net $4.1 billion worth of stocks on Monday from the open through 12:30 p.m. ET, the largest level ever for the time of day and a more than 11 standard deviation move, according to data from JPMorgan’s trading desk.
Uhhhh, just me or is that REALLY odd? Credit gets downgraded, slight dip AH leading into Monday morning, and individuals go crazy buying? Not just crazy, but historically crazy? Odd.
Posted on 5/20/25 at 12:06 pm to mmmmmbeeer
I guess we're all conditioned to buy the break.
Posted on 5/20/25 at 12:30 pm to bigjoe1
Retail was right in this instance. That Moody news was just scare tactics. It’s a lagging indicator, and we already knew all of what they had to say. Retail got the better of Wall St for one day
Posted on 5/20/25 at 12:33 pm to mmmmmbeeer
quote:
Uhhhh, just me or is that REALLY odd? Credit gets downgraded, slight dip AH leading into Monday morning, and individuals go crazy buying? Not just crazy, but historically crazy? Odd.
We just went on a huge bull run and retail has been trying to buy in. First red day and retail found a chance to buy in. We’re also near the top probably, so Wall Street was selling trying to de risk. Retail can also see how dumb that Moodys “news” was, and weren’t trying to hype it up as a sell event like Wall St
This post was edited on 5/20/25 at 12:34 pm
Posted on 5/20/25 at 12:33 pm to mmmmmbeeer
The Moody’s news was already priced in to the extent that
A) Moody’s issued their initial warning in November 2024
B) the data Moody’s used to issue their downgrade is publically available
A) Moody’s issued their initial warning in November 2024
B) the data Moody’s used to issue their downgrade is publically available
Posted on 5/20/25 at 12:34 pm to HailHailtoMichigan!
quote:
The Moody’s news was already priced in to the extent that A) Moody’s issued their initial warning in November 2024 B) the data Moody’s used to issue their downgrade is publically available
Exactly. It was just hyped up by Wall Street to try to get a lever on retail
Posted on 5/20/25 at 12:43 pm to mmmmmbeeer
quote:
Uhhhh, just me or is that REALLY odd? Credit gets downgraded, slight dip AH leading into Monday morning, and individuals go crazy buying? Not just crazy, but historically crazy? Odd.
We the People!!!
The credit rating drop is worthless at this point, why should it have even mattered? They were just the last one to downgrade and our debt is not a secret.
At this point in trading in the 21st century, pre and after hours trading is a legacy component of market manipulation. They need to move to 24 hour markets as the time of needing your broker to call down to the trader on the floor to negotiate a trade is long gone.
Retail investors are still a minority in the grand scheme of things, but their share of the pie and influence is growing steadily. The post 2000 boom in online brokerages and now $0 commissions have begun the flip. If anything GameStop, AMC and other meme stocks have shown us, when individual investors decides to work as a team, the institutions can fail.
During the covid lockdown and free government money flowing, retail investors drove upwards of 35% of volume.
Posted on 5/20/25 at 12:47 pm to mmmmmbeeer
quote:
Uhhhh, just me or is that REALLY odd? Credit gets downgraded, slight dip AH leading into Monday morning, and individuals go crazy buying? Not just crazy, but historically crazy? Odd.
Retail is playing the long game and institutional is looking for a quick buck.
If your time horizon is 20 or 30 years you always want to take advantage of stonks being on sale. Either they come back or we're all screwed anyway.
Posted on 5/20/25 at 1:38 pm to Bestbank Tiger
quote:
take advantage of stonks being on sale.
I think that's why I'm confused....we were only down like 1% pre-market. A buying opportunity? Sure. An opportunity that a complete statistical outlier of individual investors decided to jump in that morning? Nah.
I'm not even sure what my point is....just really odd behavior. I get what y'all are saying, but a 1% discount never leads to that sort of retail volume.
Posted on 5/20/25 at 1:50 pm to mmmmmbeeer
quote:Anyone with a brain doesn't trust institutions like Moodys. They are dinosaurs and exist only to enrich themselves.
Uhhhh, just me or is that REALLY odd? Credit gets downgraded, slight dip AH leading into Monday morning, and individuals go crazy buying? Not just crazy, but historically crazy? Odd.
We called their bluff.
Posted on 5/20/25 at 1:52 pm to mmmmmbeeer
Sorry you sold low, brah.
Posted on 5/20/25 at 1:54 pm to Stunrunner
quote:
I forget if it’s 2026 or 2027 but after thst, all newly established 401k plans are required to have both automatic enrollment AND automatic contribution increases of 1% every year up to like 10% or something. So in the long run, dips in the market will be smoothed out more and more by enforced buying.
Can you give me more info on this? I find it hard to believe that anyone/any entity can force an individual to contribute a certain amount to a 401k program
Posted on 5/20/25 at 2:18 pm to Mingo Was His NameO
quote:
Can you give me more info on this? I find it hard to believe that anyone/any entity can force an individual to contribute a certain amount to a 401k program
It’s written into the legislation of SECURE Act 2.0.
I believe you can opt out, but the #1 reason nobody saves in their 401k is simply because they’re too dumb to set it up, which this is designed to address.
Posted on 5/20/25 at 9:08 pm to mmmmmbeeer
quote:
Uhhhh, just me or is that REALLY odd? Credit gets downgraded, slight dip AH leading into Monday morning, and individuals go crazy buying? Not just crazy, but historically crazy? Odd.
None of the finance related news follows simple logic. There’s endless reporting about financially stressed consumers. Yet there has to be unprecedented amounts of disposable income when you see how much money is getting flushed into things like Elon trump fart coin.
Posted on 5/20/25 at 9:41 pm to Stunrunner
quote:that doesn’t sound right… but who knows
I forget if it’s 2026 or 2027 but after thst, all newly established 401k plans are required to have both automatic enrollment AND automatic contribution increases of 1% every year up to like 10% or something.
Posted on 5/20/25 at 11:12 pm to SuperSaint
Yes, it's a thing. You can opt out. It's a great thing because the vast majority of people are retarded and I'm tired of hearing "I ain't got no savings" and "the gubmint needs to save me". And if I have to read one more article about how 70% of (pick a demographic) don't have any savings or that the average retirement savings is $27.50 I might kill myself.
Posted on 5/21/25 at 6:28 am to Stunrunner
quote:
o in the long run, dips in the market will be smoothed out more and more by enforced buying.
…. or 401k fiduciaries will begin offering a wider array of investment choices
Posted on 5/21/25 at 6:49 am to mmmmmbeeer
quote:The news was "the dollar is getting riskier". People swap dollars for a something that they deem to be a better store of value, shares of the biggest companies in the world. Nobody is buying bonds so that money has to go somewhere.
Uhhhh, just me or is that REALLY odd? Credit gets downgraded, slight dip AH leading into Monday morning, and individuals go crazy buying? Not just crazy, but historically crazy? Odd.
Honestly, most news events like that don't drive the markets. Narratives are made up. Hell, I kind of just made one up. What really drives markets is the global supply of money. When the global supply of money expands, there is upward pressure on asset prices.
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