Not your grandpa's stock market: Why swing trading is the new norm

About this video

• Video Title: Not your grandpa's stock market: Why swing trading is the new norm
• Channel: Yahoo Finance
• Speakers: Jared Blikre, Sydney Frerieded, Kenny Glick
• Duration: 22:33

Overview

This video discusses the current state of the stock market, focusing on the shift towards swing trading and the prevalence of high-growth sectors like space, rockets, and AI. The hosts, Jared Blikre and Sydney Frerieded, are joined by trader Kenny Glick, also known as "The Warlock," to analyze market trends, investment strategies, and specific trading techniques like VWAP. They also touch upon precious metals and cryptocurrencies.

Key takeaways

• Evolving Market Dynamics: The market is characterized by short-lived sell-offs and rapid breakouts, making traditional long-term investing strategies less effective. This has led to a rise in swing trading.
• The "This Time It's Different" Phenomenon: While the phrase is historically associated with market crashes, current market conditions, particularly the speed and scale of breakouts, suggest a departure from past norms, potentially heralding a new industrial revolution.
• Growth Sectors: Areas like space, rockets, quantum AI, and chips are seeing significant activity and offer trading opportunities, with leverage playing a crucial role.
• Leverage and Options: The increased availability and use of leverage, including in options trading (especially zero-day options), offer high-risk, high-reward opportunities for traders.
• Precious Metals and Crypto: Silver is showing strong performance, nearing its 2011 high, and is considered a key ingredient in the AI trade. Gold is also mentioned. Cryptocurrencies like Bitcoin and Ethereum are still favored for diversification, though their role as a market hedge is questioned.
• VWAP as a Trading Tool: Volume Weighted Average Price (VWAP) is highlighted as a critical indicator for understanding institutional buying trends and identifying trading opportunities, particularly for intraday and anchored strategies.
• "Faux Show Bro" Pattern: A specific trading pattern (fake out, shake out, breakout) is described as a reliable indicator of a stock's upward potential, especially when it breaks VWAP.