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TradeKing Survey Results: For Active Traders, 2010 Can’t Come Soon Enough

Nearly Half of Investors Surveyed Are Taking a Wait-and-See Position on the Market; Intently Watching Unemployment and Other Domestic Economic News as Trade Triggers; Energy Way Up on List of Long Opportunities

Nov 3, 2009



 BOCA RATON, Fla., November 3, 2009 – According to a recent online survey of more than 270 retail investors conducted by online broker TradeKing (www.tradeking.com), most investors are writing off hopes of a recovery this year and looking to 2010 for relief.

 

In the survey conducted during the last week in October 2009, 47 percent of investors described their market outlook as “neutral” or “not sure,” which are among the highest levels reported since the survey’s inception in July 2007. Accordingly, most of those surveyed maintain a skeptical view of the Obama administration’s handling of financial market matters, with more than 62 percent of respondents saying the administration’s policies either make them feel “less confident in the market” or had “no effect at all” on their market confidence, up two percentage points from last quarter. 

 

“One thing is certain: uncertainty dominates right now,” said Don Montanaro, Chairman and CEO of TradeKing. “We see at TradeKing how investors’ bullishness comes in the form of very specific moment-in-time opportunities, but the overall sense is that the market could go either way on any given day until we see some solid trending data signaling long-term recovery.”

 

Unemployment Remains #1 Trade Trigger for Second Consecutive Quarter

 

U.S. Unemployment Claims held fast as the top trade trigger for both equities and options traders, with 41 percent of respondents pointing to this issue as their primary concern. U.S. Housing, Consumer Spending and Interest Rates all tied for second at 30 percent. These concerns knocked Quarterly Earnings from its #2 spot last quarter, falling sharply from 36 percent to 27 percent in this most recent survey.

 

Energy and Technology Sectors Have Moved Up Sharply As Top Long Opportunities for Equities and Options Traders

For the sixth straight quarter, Energy remained the favorite sector for both equities and options traders as having the greatest potential for success in a long position for the coming quarter, followed closely by Technology. 

  • 58 percent of total respondents selected Energy as their top long play in the coming quarter, up from 49 percent in July. It was followed by Technology at 47 percent, which rose from 34 percent just three months ago.

From a short position, Transportation and Travel took top spot for the second consecutive quarter, followed by Finance and Retail as the most promising short plays.

  • Transportation and Travel was selected by 24 percent of the respondents for the top overall sector to short, up from 19 percent last quarter. Finance took second at 23 percent and Retail came in third at 21 percent.

 

The in-house survey was conducted October 26-30, 2009, via email to more than 3,000 TradeKing clients, with an estimated 95 percent confidence level. The survey results were segmented into two client groups: those who trade “options only” with TradeKing and those who trade “equities only.”

 

About TradeKing

TradeKing (http://www.tradeking.com) is a nationally licensed online stock and options broker dealer offering simple, low trading fees ($4.95 per trade plus $.65 per option contract) with no hidden costs or account minimums.1 A pioneer in integrating new financial social media as part of its innovative online equities, options trading and fixed-income trading platform, TradeKing has received multiple five-star ratings from top industry sources and was given five stars in customer service by SmartMoney2 Magazine, ahead of OptionsXpress, Scottrade, Fidelity and TD Ameritrade. (June 2009 SmartMoney Broker Survey).  

 

Follow TradeKing on Twitter at http://twitter.com/TradeKing.

 

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options available at www.tradeking.com/ODD.

TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. The content of this press release is provided for educational and informational purposes only, does not constitute a recommendation to enter in any of the securities transactions or to engage in any of the investment strategies presented herein, and does not represent the opinions of TradeKing or its employees.

Online trading system response and access times may vary due to market conditions, system performance, and other factors.

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(1) (Please see https://www.tradeking.com/p/home/tradeking/about/commissionsfees.tmpl for more details on trade commissions for low priced stock, bonds, mutual funds and other securities).

(2) SmartMoney is a joint publishing venture of Dow Jones & Company, Inc. and Hearst Communications, Inc. All Rights Reserved Worldwide.


 



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