We have extensively discussed the topic of retail daytreaders flooding the market in recent months, but the following chart summarizes everything we have said clearly and succinctly: it shows that google trends for "day trading" and "call options" have exploded in recent weeks, surging to never before seen levels.
We hope this satisfies all those journalists who are searching for an explanation for what we described three weeks ago in "how retail traders taking over the stock market."
That said, this is nothing new: as John Hussman pointed out, we have seen this before every time the surging market makes geniuses out of everyone: "Bucket shops and boiler rooms are alive and well. The only things that change are the faces."
Guy buys penny stock.— John P. Hussman (@hussmanjp) June 10, 2020
Convinces others to buy.
Penny stock price soars as own followers chase it.
Guy unloads stock to followers.
Followers call broker to sell.
Broker asks "To whom?"
Bucket shops and boiler rooms are alive and well.
The only things that change are the faces.