Us stocks knock on the blackboard:
The Dow and S & P 500 are hitting record highs, and day traders are betting on their stock and option positions.
The US stock market seems to be booming again in recent days, with the Dow and the S & P 500 hitting new highs. JPMorgan Chase & Co's research report shows that these day traders are constantly betting on their stocks and options.
Just last week, intraday trading volume reached $565 million, up from 92% last year. Most of them bought call options, pushing them back from their trough, while bearish investors began to be driven out of the market.
Non-institutional option trading volume as a percentage of total trading volume
JPMorgan Chase & Co's data shows that under the influence of past outbreaks and working from home, individual investors' enthusiasm for the stock market is at an all-time high. Although the survey shows that many investors also agree that there is some bubble in the stock market, this expectation is still difficult to stop them from continuing to invest in the market.
The current personal trading frenzy and confidence in the stock market are largely driven by momentum trading, and the momentum effect is gradually taking shape in the current market.
-Richard Bernstein analyst Suzuki
Momentum trading strategy is one of the challengers to the classical market efficiency hypothesis. This strategy assumes that stocks that have performed well in the past will most likely continue to perform well, and individuals only need to buy these stocks to continue to make a profit.
The investment returns of US stock investors have gradually climbed on the back of better-than-expected economic data and corporate earnings. The S & P is gearing up for its fourth straight trading week, while the NASDAQ has breached the 14000 mark.
The main favorite of intraday traders is the technology stocks represented by the Nasdaq, just last week.$PowerShares QQQ Trust, Series 1 (QQQ.US) $This tracking ETF has absorbed as much as US $70 million, while$NASDAQ triple long ETF-ProShares (TQQQ.US) $Absorbed 160 million US dollars. These ETF have a stock that is most popular with these day traders.$Apple Inc (AAPL.US) $$NVIDIA Corp (NVDA.US) $$Boeing Co (BA.US) $AndUnited Continental Airlines (UAL.US) $.
JPMorgan Chase & Co's analysts believe that the rising prices of these stocks, which are loved by investors, are becoming an emotional catalyst, allowing investors to keep betting on the investment targets they have already made a profit. this frenzied betting will become a strong driving force for the growth of these stock prices.