A photo illustration by Jakub Porzycki.
A photo illustration by Jakub Porzycki.
According to a Thursday report, Wall Street firms can keep an eye on retail traders thanks to a new tool from JPMorgan.
About 30 asset and quant fund managers are using the bank's " Through the Retail Lens" tool. The new tool shows retail flows, predicts the next short squeeze, and combs through social media to find retail traders' sentiment on a stock.
A bank representative didn't respond to Insider's request for comment. According to JPMorgan, investors may feel like they're partially blind if they don't pay attention to retail.
Retail traders have made their mark on Wall Street this year, starting in January when millions of investors rallied together to drive an epic surge in shares of GameStop, AMC, and others. The rally caused some hedge funds to lose money on their bearish positions.
The stock market has been driven by retail traders this year. Black Friday this year when markets slumped on Omicron worries and in September when Chinese real-estate giant Evergrande's debt crisis sparked a selloff were examples of individual traders buying market dips.
Retail traders now account for 20% of stock-market activity, due to the boredom caused by the swine flu, and zero-commission trading, according to Insider. It was about half that in 2019.
Business Insider has an original article.
