Nearly 800,000 people opened new accounts at the three biggest online brokers in March and April amid the heart of the COVID-19 lockdowns, according to the Financial Times. That wave of new accounts has infused life into an industry that had been left for dead.
New customers, who are skewing younger, are seeing opportunities that "a lot of professional traders miss,” Kinahan said. He pointed to TD Ameritrade’s data, which shows clients were buying the heavily beaten-down airlines and cruise operators beginning in March. American Airlines is up 85 percent since bottoming in May and Norwegian Cruise Line Holdings has surged 125 percent since March 18.
Some of his best trades have been buy-and-holds in Spirit Airlines and Boeing, which have gains of 169 percent and 58 percent, respectively. He also made 130 percent on a day trade in the recently-bankrupt rental car company Hertz.
“The smart money is the Robinhood accounts, and dumb money are billionaire hedge funds,” Bianco said with a hint of sarcasm. He alluded to legendary investor Stanley Druckenmiller, who on Monday told CNBC’s “Squawk Box” that he had returned just 3 percent since the stock market bottomed on March 23 while the benchmark S&P 500 was up 43 percent.
Lululemon
Portnoy has had some bad trades too. He took a big hit going “all-in” on Lululemon ahead of the company’s fourth-quarter earnings report on March 26. While Portnoy was correct in being bullish -- the stock has soared 53 percent since the report -- he got shaken out as shares fell by as much as 9.7 percent over the following five trading days.
Boeing
Portnoy said he got "murdered” when he tried to short Boeing back in March -- basically, making a bet that the planemaker's stock would fall -- and doesn’t think he will be shorting stocks again “anytime soon.”
His trading decisions and commentary have made him a target of the so-called Fin-Twit community, comprised mostly of financial pros and journalists who say he doesn’t know what he is doing and his bank account will eventually pay the price.
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