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TradeKing Quarterly Investor Survey Shows Sharp Increase in Bullishness on Eve of Mid-Term Elections

Bullish Sentiment Rises 35 Percentage Points since July; More Than Half of Investors Surveyed Believe S&P Will Finish Up 5-10 Percent by Year’s End

Nov 1, 2010

BOCA RATON, Fla. – November 1, 2010 – With the imminent approach of the mid-term elections, U.S. investors appear far more optimistic in their market outlook than three months ago, according to a late October 2010 survey of more than 300 investors conducted by online broker TradeKing (www.tradeking.com). According to the survey, 45 percent of investors described themselves as being either “bullish” or “very bullish” on the market for the next three months, up dramatically from 10 percent just last July. Only 13 percent described themselves as “bearish” or “very bearish,” with the remainder taking a “neutral/not sure” position. Of those surveyed, 59 percent of online investors said they believe the S&P 500 index will finish up between 5-10 percent by year-end, compared with 50 percent holding that opinion in July. As of October 29th, the S & P is up 6.11% for the year thus far.

 

Anticipated Impact of Mid-Term Elections on Trading Activity

With regard to tomorrow’s mid-term elections, the majority of investors indicated they believe the outcome of the elections would have little to no impact on their trading activity, although sentiment overall seem slightly more favorable to a Republican Party victory vs. the Democratic Party. The survey queried investors on their trading plans based on various post-election scenarios:

 

 

Increase My

Trading

Decrease My Trading

No Impact

Unsure

No answer

If Democrats Hold Majority

in Both Houses of Congress

9%

12%

44%

16%

19%

If GOP Gains Majority in One House of Congress

22%

5%

41%

18%

14%

If GOP Gains Majority in

both Houses of Congress

24%

7%

37%

20%

12%

 

 

 “Another key finding in the survey revealed that investors overwhelmingly identified jobs and the economy as the most important deciding factors in the upcoming election,” said Don Montanaro, Chairman and CEO of TradeKing. “If we combine that with investors’ apparent renewed confidence in the market, one interpretation might be that it is precisely the country’s intense focus on the economy that gives them hope for a brighter finish to 2010 and start to the New Year.”

 

Unemployment and Quarterly Earnings Top List of Potential Trader Triggers; Energy and Technology Remain Investors’ Favorite Sectors Over Next Three Months

 

Among those investors surveyed, 42 percent ranked U.S. unemployment claims as their top trade trigger to watch for the next three months, down slightly from 49 percent in July, followed by quarterly earnings with 35 percent and interest rates with 32 percent of responses.  Consumer spending fell from second place in July’s survey to fourth in October, earning only 28 percent of responses. 

 

When asked to pick the best sectors for the next three months from a “long” position, respondents once again listed energy and technology as the overwhelming top picks, earning 46 percent and 43 percent of responses, respectively. The finance sector unseated the retail sector for the top spot as having the most potential from a “short” position near-term, with retail and entertainment tying for second place.


The in-house survey was conducted October 25-28, 2010, via email to 3,000 TradeKing clients, with an estimated 95 percent confidence level. The survey results were segmented into client groups in five major metro regions and their surrounding areas, including New England, New York, Chicago, San Francisco and Los Angeles. For information on the region-specific findings, contact sparente@tieronepr.com

 

About TradeKing

TradeKing (http://www.tradeking.com) is a nationally licensed online stock and option trading broker offering simple, low cost online 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 discount broker awards from top industry sources and was rated best in customer service by SmartMoney2 Magazine, ahead of OptionsXpress, Scottrade, Fidelity, and TD Ameritrade.. (June 2010 SmartMoney Broker Survey).  

 

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(1) Please see http://www.tradeking.com/fees for more details on trade commissions for low priced stock, bonds, mutual funds and other securities.

(2) TradeKing was ranked #1 in Customer Service in the SmartMoney June 2010 Broker Survey based on the following categories: Mutual Funds & Investment Products, Banking Services, Trading Tools, Research, and Customer Service. SmartMoney is a registered trademark of SmartMoney, a joint publishing venture between Dow Jones & Company, Inc. and Hearst Partnership. Supporting documentation for any claims, comparison, statistics, or other technical data, will be supplied upon request by calling 877-495-5464 or via email at service@tradeking.com.  



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