“The US has Become a Nation of Day Traders”
$DIA, $SPY, $QQQ, $BTCUSD
Many stock-market participants are no longer investing for the long term, they are day trading for tic by tic profits. Though the majority are losers.
That is the take on the current state of the stock market, which has seen average speculators crushed by short-volatility products and speculators gripped by a fervor around blockchain-related assets according to an former SEC Chairman Harvey Pitt
Mr. Pitt, 72 anni, in a TV interview Friday morning said that the US has “become a nation of day traders.” Mr. Pitt was the 26th SEC head, serving from Y 2001 to 2003.
‘The problem we have is our markets have become extremely volatile and as a generalization we have become a nation of day traders. People are no longer buying on the fundamentals of companies and holding for the long term.’
His comments come after a historic surge of a Key gauge of Wall Street fear, the Cboe Volatility Index(VIX) , triggered a quick market correction for the DJIA, S&P 500, and NAS Comp.
Stocks have quickly recovered a good bit of those losses, but not before the abrupt downturn after a record frame of market calm, and consistent records highs for the main equity benchmarks revealed a huge number of bets by unsophisticated investors that measures of market calm would continue.
Investors also have rushed into cryptocurrencies, as fear of missing out, helped to drive prices of Bitcoin to a record around $20,000 in December before seeing a deep Fibo retracement, Bitcoin is also in recovery mode.
Currently, Bitcoin is trading at: 10,466.50, +48.68, or +0.47%, as of 12:46a GMT, the market is open.
Against that backdrop Mr. Pitt offers some sage advice about investing in companies:
“First figure out what the company does, figure out why you want to make an investment, do diligence in terms of finding out whether it’s a real company or just a name. And if you satisfy yourself on all of those elements, then invest. The problem we have is that most people investing in these companies are doing it because they want to partake of a craze and they don’t have any idea why they’re making their investments or what the companies do,” he said.
Friday, the major US stock market indexes finished at: DJIA +19.01 at 25219.38, NAS Comp -16.96 at 7239.46, S&P 500 +1.02 at 2732.22
Volume: Trade on the NYSE came in at: 846-M/shares exchanged.
- NAS Comp +4.9% YTD
- S&P 500 +2.2% YTD
- DJIA +2.0% YTD
- Russell 2000: +0.5% YTD
HeffX-LTN Market Indexes Technical Analysis
Have a terrific Presidents’s Day weekend.