[Market Outlook] The Robinhood IPO Could Have Called ‘The Top,’ but It Didn’t

The Robinhood IPO Could Have Called 'The Top,' but It Didn't

Last week the much anticipated Robinhood IPO and several high-profile earnings announcements revealed a lot about investor sentiment and what to expect for market's trend going forward. First, the Robinhood IPO had the potential to create an obvious indicator of a market top considering…

It has created a movement that has enabled and enflamed the belief that the stock market was an easy ticket to riches in a generation of new market participants that are savvy practitioners of making ideas go viral. It gave 25% of the IPO allocation to its customers. Normally the retail investor would get about 10%. It got the "stamp of approval" from Cathie Wood, who is viewed as one of the hottest stock pickers, as demonstrated by the fact that she bought 1.3 million shares after the IPO opened. If the IPO had exploded higher, this IPO event would have almost certainly decorated the covers of every major publication. I would not be surprised to find it on the cover of Time, which is a classic "market top" indicator. A hot IPO would have not only rewarded its customers but most likely encouraged the meme stock traders to buy more. In short, a big jump after the IPO with all the typical fanfare would have been a stereotypical "irrational exuberance" event. Instead, as markets often do, the opposite occurred, and the bulls should be thankful. Use the links below to read why the bulls should be thankful that the Robinhood IPO was not a huge success, and get this week's market analysis Click here for the Free Market Highlights Click here for the Premium Market Highlights Best wishes for your trading, Keith Schneider CEO MarketGauge

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