{"id":158757,"date":"2021-01-20T14:30:00","date_gmt":"2021-01-20T11:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/need-to-know-robinhood-day-traders-are-squeezing-the-hedge-funds-heres-why-it-may-continue\/"},"modified":"2021-01-20T14:30:00","modified_gmt":"2021-01-20T11:30:00","slug":"need-to-know-robinhood-day-traders-are-squeezing-the-hedge-funds-heres-why-it-may-continue","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/need-to-know-robinhood-day-traders-are-squeezing-the-hedge-funds-heres-why-it-may-continue\/","title":{"rendered":"#Need to Know: Robinhood day traders are squeezing the hedge funds \u2014 here\u2019s why it may continue"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c882d9ebfd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c882d9ebfd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/need-to-know-robinhood-day-traders-are-squeezing-the-hedge-funds-heres-why-it-may-continue\/#Critical_information_for_the_US_trading_day\" >Critical information for the U.S. trading day<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/need-to-know-robinhood-day-traders-are-squeezing-the-hedge-funds-heres-why-it-may-continue\/#Steve_Goldstein\" >Steve Goldstein<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Need to Know: Robinhood day traders are squeezing the hedge funds \u2014 here\u2019s why it may continue<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Critical_information_for_the_US_trading_day\"><\/span>\n  Critical information for the U.S. trading day<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000135108\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       As the saying goes, the market can remain irrational longer than you can remain solvent. And what is h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening now is that the big players are being pushed around \u2014 David bullying Goliath, if you will \u2014 by the legions of day traders, using services including the Robinhood investing app to drive stocks higher.<\/p>\n<p> That is the theory put forward by Michael Batnick, director of research at Ritholtz Wealth Management<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/theirrelevantinvestor.com\/2021\/01\/19\/is-david-bullying-goliath\/\" class=\"icon none\"> and author of the Irrelevant Investor blog<\/a>. \u201cThese traders are moving from stock to stock. They squeeze all the juice until there\u2019s nothing left and then move onto the next one,\u201d says Batnick.<\/p>\n<div class=\"paywall\">\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:67.109375%;\" data-mobile-ratio=\"67.109375%\" data-layout-ratio=\"67.109375%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-287555?width=140&amp;size=1.490104772991851 140w,\nhttps:\/\/images.mktw.net\/im-287555?width=540&amp;size=1.490104772991851 540w,\nhttps:\/\/images.mktw.net\/im-287555?width=620&amp;size=1.490104772991851 620w,\nhttps:\/\/images.mktw.net\/im-287555?width=700&amp;size=1.490104772991851 700w,\nhttps:\/\/images.mktw.net\/im-287555?width=860&amp;size=1.490104772991851 860w,\nhttps:\/\/images.mktw.net\/im-287555?width=1260&amp;size=1.490104772991851 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-287555?width=620&amp;size=1.490104772991851\" data-enlarge=\"https:\/\/images.mktw.net\/im-287555?width=1260&amp;size=1.490104772991851\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       He points to this chart from JPMorgan showing the most shorted companies in the Russell 300<br \/>\n        RUA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598149\/delayed\" class=\"positive\">+0.85%<\/bg-quote><br \/>\n       surging higher. \u201cI can\u2019t prove that the digital traders are the culprits, but I don\u2019t think it takes a titanic sized leap of faith to make the connection,\u201d he said.<\/p>\n<p>Batnick included this viral video of a young couple sharing their investing strategy on TikTok. (If you don\u2019t click on the link, the man says he buys stocks when they start going up and sells when they stop doing so. Momentum trading, in other words.)<\/p>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetDynamic\n          inline\n    scope-web|mobileapps\n  article__inset\n        article__inset--type-InsetDynamic\n          article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n        iframe.twitter-tweet {\n            width: 100% !important;\n        }\n    <\/style>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>\n        <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RampCapitalLLC\/status\/1350875874481025032\"><\/a>\n        <\/p><\/blockquote>\n<p>    <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/p><\/div>\n<p>       What\u2019s different this time? The networking effect. \u201cThis is a gigantic community now, and if we\u2019ve learned anything over the last decade, it\u2019s that we should be careful shorting networks. There are nonmonetary considerations at play here, like belonging. And fun. Did I mention they\u2019re having fun?\u201d says Batnick. \u201cI don\u2019t think these people can continue to make money forever, but this idea that it ends with them going away is not something I see coming.\u201d<\/p>\n<p><strong>The buzz<\/strong><\/p>\n<p>Supreme Court Chief Justice John Roberts will swear in Joe Biden as the 46th president of the United States. The inauguration will be a lower-key affair due to the COVID-19 pandemic, with some 200,000 flags replacing people on the National Mall. Vice President Mike Pence will represent the departing administration. Biden also announced a raft of first-day executive actions he will take, including rejoining the Paris climate accord and the World Health Organization, and stopping the construction of the U.S.-Mexico border wall.<\/p>\n<p>In one of his last acts in office, President Donald Trump pardoned 73 and commuted the sentences of 70, including former adviser Stephen Bannon, Republican fundraiser Elliott Broidy, and rappers Lil Wayne and Kodak Black. From the business world, Anthony Levandowski was pardoned after stealing trade secrets from <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> giant Google\u2019s<br \/>\n        GOOG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205453964\/composite\" class=\"positive\">+3.15%<\/bg-quote><br \/>\n       self-driving program, as was Gregory Reyes, the former chief executive of Brocade Communications, who was the first to be convicted of illegal stock options backdating. <\/p>\n<p>Notably absent from Trump\u2019s list was any member of his family. Joe Exotic, the star of the Netflix <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> Tiger King, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fox4news.com\/news\/tiger-king-star-joe-exotic-fails-to-get-pardon-from-donald-trump\" class=\"icon none\">also wasn\u2019t pardoned<\/a>, after hiring a limousine in anticipation of being released from prison.<\/p>\n<p>Netflix<br \/>\n        NFLX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202353025\/composite\" class=\"positive\">+0.76%<\/bg-quote><br \/>\n       shares jumped 13% in premarket trade after the streaming service reported 8.5 million new subscribers in the fourth quarter and said it will no longer need to finance programming from debt. Earnings are due from consumer products giant Procter &amp; Gamble<br \/>\n        PG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202894679\/composite\" class=\"negative\">-0.88%<\/bg-quote><span>,<\/span><br \/>\n       as Morgan Stanley<br \/>\n        MS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209104354\/composite\" class=\"negative\">-0.33%<\/bg-quote><br \/>\n       wraps up earnings season for the Wall Street banks. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Internet giant Alibaba<br \/>\n        BABA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201948298\/composite\" class=\"positive\">+3.36%<\/bg-quote><\/p>\n<p>        9988,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/215112034\/delayed\" class=\"positive\">+8.52%<\/bg-quote><br \/>\n       rose in Hong Kong trade after founder Jack Ma made his first public appearance, at a charity event, since his run-in with Chinese authorities over the cancellation of the Ant Financial initial public offering.<\/p>\n<p>Short selling research firm Citron Research is holding a presentation on video<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> retailer GameStop<br \/>\n        GME,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203755179\/composite\" class=\"positive\">+10.87%<\/bg-quote><span>,<\/span><br \/>\n       which has doubled in price in 2021. In a tweet, Citron said buyers of GameStop at this level \u201care suckers at this poker game.\u201d<\/p>\n<p><strong>The markets<\/strong><\/p>\n<p>U.S. stock futures<br \/>\n        ES00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209948968\/delayed\" class=\"positive\">+0.36%<\/bg-quote><br \/>\n       were pointing to a stronger start, with the tech-heavy Nasdaq-100<br \/>\n        NQ00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210219788\/delayed\" class=\"positive\">+0.75%<\/bg-quote><br \/>\n       contract leading the way.<\/p>\n<p>The yield on the 10-year Treasury<br \/>\n        TMUBMUSD10Y,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.000%\" channel=\"\" class=\"\">1.100%<\/bg-quote><br \/>\n       was 1.10%.<\/p>\n<p><strong>The chart <\/strong><\/p>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:86.32812499999999%;\" data-mobile-ratio=\"86.32812499999999%\" data-layout-ratio=\"86.32812499999999%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-287556?width=140&amp;size=1.158371040723982 140w,\nhttps:\/\/images.mktw.net\/im-287556?width=540&amp;size=1.158371040723982 540w,\nhttps:\/\/images.mktw.net\/im-287556?width=620&amp;size=1.158371040723982 620w,\nhttps:\/\/images.mktw.net\/im-287556?width=700&amp;size=1.158371040723982 700w,\nhttps:\/\/images.mktw.net\/im-287556?width=860&amp;size=1.158371040723982 860w,\nhttps:\/\/images.mktw.net\/im-287556?width=1260&amp;size=1.158371040723982 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-287556?width=620&amp;size=1.158371040723982\" data-enlarge=\"https:\/\/images.mktw.net\/im-287556?width=1260&amp;size=1.158371040723982\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       Ned Davis, the senior investment strategist of his eponymous Ned Davis Research, says the market looks bubbly but that the ride up will still continue. The percentage of stocks making weekly new highs has risen, while the percentage of stocks making new lows has remained low, he said. Historically, new highs peak 36.5 weeks before the market does. He does agree the market looks extended relative to its long-term trend. But it isn\u2019t as extended as 1929 or 2000, he says. <\/p>\n<p><strong>Random reads<\/strong><\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.abc.net.au\/news\/2021-01-20\/pink-seesaws-us-mexico-border-wall-win-uk-beazley-design-award\/13072818\" class=\"icon none\">Pink seesaws<\/a> at the U.S.-Mexico border won a design award.<\/p>\n<p>A <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bbc.co.uk\/news\/world-europe-55719685\" class=\"icon none\">stolen 500-year-old paintin<\/a>g that may have been created by Leonardo da Vinci was returned to a museum, which didn\u2019t know the artwork was missing in the first place. <\/p>\n<p><strong>Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern. <\/strong><\/p>\n<p><strong>Want more for the day ahead? Sign up for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.barrons.com\/newsletters?sub=462\" class=\"icon none\">The Barron\u2019s Daily,<\/a> a morning briefing for investors, including exclusive commentary from Barron\u2019s and MarketWatch writers.<\/strong><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Steve Goldstein\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Steve_Goldstein\"><\/span>Steve Goldstein<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D20FC4BB5DD2%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Need to Know: Robinhood day traders are squeezing the hedge funds \u2014 here\u2019s why it may continue&#8221; Critical information for the U.S. trading day As the saying goes, the market can remain irrational longer than you can remain solvent. And what is happening now is that the big players are being pushed around \u2014 David&#8230;<\/p>\n","protected":false},"author":1,"featured_media":158758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-158757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/158757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=158757"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/158757\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/158758"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=158757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=158757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=158757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}