Is this #StockMarket action a #retailtrader driven rally?

Normally, retail traders don't affect markets much.

But with the #StimulusCheck being handed out to people in various countries, we can see a huge influx of money into 'popular' stocks.

Let's look more in-depth.

We can't rely solely on search data as it's not accurate. Given that before the peak of 100% on #GoogleTrends for #BuyStocks it was ranging between 8-12%, this represents an increase of about 10x in search queries for 'buy stocks' alone, not including the hundreds other queries.

Daily average retail investor activity went parabolic on #ETrade and #TDAmeritrade this year, supporting the point that people staying at home are investing or trading, possibly adding their #stimulus money into the market.

According to data from @Yodlee @ENVintel, deposits of people with income brackets 35-50K, 50-75K, 100-150K and 150K+ had significant increases in the past month, almost 100% in some cases.

Lots of money is going into companies that have been in the spotlight, making one wonder if people are just throwing money at companies they hear about.

Biggest increases include cruises, and airlines: $AAL, $DAL, $CCL, $RCL, $UAL, $NCLH.

These had close to zero holders prior.

Considering @RobinhoodApp is a relatively new broker with less users than older brokers like TD, Schwab, or E*Trade, we can expect the numbers of new holders of those stocks to be in the millions.

We can conclude that the markets received a huge influx of new money from retail traders all at the same time.

The problem with retail traders is that they will need the money they've invested, eventually. It has to be pulled out of the market; once the stimulus checks end...

Although some industries like tech are close to making new all-time-highs already, I don't expect the wider market to recover.

I expect a downtrend continuation in the coming months, and the stock prices to return to reality as the market slowly runs out of new suckers.

Sources:

https://sentimentrader.com/blog/consumers-pull-a-180-on-stocks-but-are-trading-like-crazy/

https://www.cnbc.com/2019/12/04/start-up-robinhood-tops-10-million-accounts-even-as-industry-follows-in-free-trading-footsteps.html

https://www.tradersinsight.news/traders-insight/securities/macro/a-very-scary-finding/

https://robintrack.net/ 

https://neilpatel.com/ubersuggest/  https://trends.google.com