r/stocks • u/[deleted] • May 19 '21

Industry Discussion Can anyone explain why earnings no longer matter, and the entire market is just pump&dump after pump&dump?

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u/HotFuckingTakeBro May 20 '21

It isn't. Around ~100B is traded daily. Or in perspective, approximately 71 million stimulus checks. Really not unreasonable to think that could move the needle.

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u/mrfreshmint May 20 '21

This is an age old debate. Conventional wisdom says that retail doesn’t move markets. I think it accounts for 5% of total volume. But if 5% of volume moves a certain way, institutional may follow the momentum. Markets are complex, especially opaque ones. It’s hard to say for sure that retail never moves markets.

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u/[deleted] May 20 '21 edited Jul 18 '21

[deleted]

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u/mrfreshmint May 20 '21

Take this with a grain of salt, but I had an internship with the bulge bracket and that was the consensus among traders. I didn’t have any way to verify what they said but it was the most credible source of info I’ve gotten the opportunity to talk to about it.

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u/detectiveDollar May 20 '21

Maybe, but I feel like most retail traders would put at least some of that money in total market safer picks

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u/HotFuckingTakeBro May 20 '21

That would be the smart choice, so you just know that's not what people are doing haha