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Momentum Monday - The Degenerate Economy Knows No Bounds as Robinhood Gets Added to S&P 500

The Flippening...Will Robinhood Surpass Schwab?

Author

Howard Lindzon
September 08, 2025

As a reminder, MarketSurge (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from MarketSurge. They are offering my readers 2 months for $59.95 - save $239. That's 80% off the most powerful stock research platform for individual investors.

Good morning…

I am back in Coronado for the week. Ivanhoff did the show by himself (video link at the end) as New York was a mess of rain and traffic so getting home yesterday was an all-day affair.

This market has been fantastic for swing traders and trend traders. I have no idea what stops it so I keep taking good entries as I see them. So many of you have been following along here on Momentum Monday over the years and it is nice to hear so many have caught this great surge from the $VIX 60 bottom back in April.

I have to mention Robinhood because…wow. On Friday they were added to the S&P 500 and this morning the stock is trading at $115 ( $HOOD ( ▲ 13.9% ) ). In my wildest dreams I could not have imagined this when we invested at the seed stage back in 2013 at 6 cents a share. Stocktwits says it pretty well below:

The speed and scale of this ascent is staggering. For context here is Robinhood market capitalization plotted against Schwab and Interactive Brokers.

Way back in 2019 I suggested a ‘brokerage flippening’ would take place in my newsletter predicting Robinhood surpassing Etrade which at the time was $10 billion. Robinhood is now a $90 billion company in just TWELVE years.

As prediction markets (Polymarket and Kalshi are early leaders) explode with activity and cash, it is hard to predict how big this new degenerate economy becomes. It has been a huge mistake for those that chose to ignore it.

Have a great day.

Welcome back to Momentum Monday!

In today’s episode of Momentum Monday, Ivanhoff and I discuss the following:  

  • Market Shakeout and Big Tech Moves

  • Earnings Surprises from Major Players

  • Bullish Catalysts: Lower Rates & Sector Winners

  • Biotech, Home, and Financial Sector Action

  • Solar Strength and Long-Term Catalysts

  • Growth Stocks, Rotation, and Bullish Outlook

In This Episode, We Cover:

  • Market Shakeout and Big Tech Moves (0:00)

  • Earnings Surprises from Major Players (1:11)

  • Bullish Catalysts: Lower Rates & Sector Winners (2:34)

  • Biotech, Home, and Financial Sector Action (3:32)

  • Solar Strength and Long-Term Catalysts (5:11)

  • Growth Stocks, Rotation, and Bullish Outlook (7:27)

Here are Ivanhoff’s thoughts:

It is said that we should pay the most attention to seasonality when it doesn’t follow the expected path, because it would not be priced in. This is exactly what has been happening in August so far. Historically, US stocks lose ground in August and September in the second year after the Presidential elections. Not this time around; at least, not so far. There are enough other catalysts to change the projected trajectory. 

The Fed’s chairman hinted that they might be ready to begin rate cuts. The market loved the message. Small caps gained 4%. Crypto, homebuilders,  and China were also among the best performers. The US Dollar was the biggest loser.

In the meantime, we are in the midst of the biggest deregulation of the financial industry in decades, which allows banks to use more leverage and regular investors to have access to more asset classes. It is an environment primed for degenerate speculation.

And here are the charts discussed:

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