Retail Investor Activity Goes Parabolic - Is Trouble Ahead?
Retail investors are jumping into the markets in record numbers. Less certain is whether a majority of these new retail investors have the tools and the experience needed to do well over time. Tickeron's platform of Artificial Intelligence-generated can help.
According to Piper Sandler analysts, retail trading volume that goes through wholesale market makers accounted for nearly half of all trading in the first 11 days in January. For some wealth managers and trading platforms, this has been welcome news. Morgan Stanley just completed its takeover of E*Trade, reporting 900,000 new self-directed accounts over the last two quarters. Charles Schwab, which is now combined with TD Ameritrade, has seen daily trading volumes of close to 8 million trades, which is well higher than volume last year. Schwab has also reported a 16% uptick in average margin loan balances over the past two quarters, suggesting that investors are growing more comfortable with risk-taking.
It's good to see that new investors are showing interest in trading and investing, but more concerning to me is whether investors are taking on too much risk and making trades without having strong fundamental and technical research to back those trades. In my view, it won't take long for many investors to lose money - that's what the market almost always does to blind risk-takers.
Tickeron has several Artificial-Intelligence driven platforms, and if you're new to retail trading and investing, it could be helpful to have A.I. help you drive your investment-decision making. Below, Tickeron's A.I. analyzes major banks that could benefit from the wave of retail investor interest.
XLF in downward trend: 10-day moving average broke below 50-day moving average on March 11, 2025
The 10-day moving average for XLF crossed bearishly below the 50-day moving average on March 11, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 03, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on XLF as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
XLF moved below its 50-day moving average on March 04, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLF declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where XLF's RSI Indicator exited the oversold zone, of 19 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where XLF's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLF advanced for three days, in of 349 cases, the price rose further within the following month. The odds of a continued upward trend are .
XLF may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 331 cases where XLF Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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