Here’s what retail traders are buying in this choppy market

Retail traders are choosing to keep in the market amidst the ongoing volatility, but with a different strategy, JJ Kinahan said this morning on a CNBC interview. He’s the Chief Marketing Strategist at Tastyworks.

Retail traders are switching to conventional names

According to Kinahan, retail traders are no longer interested in the beaten down pandemic darlings. They are, instead, switching to more conventional picks. On CNBC’s “Squawk Box”, he said:

Names he quoted, in particular, include McDonalds, Apple, Coca-Cola, and Microsoft Corporation that lowered its Q4 outlook earlier this month.

U.S. equities have not bottomed yet

S&P 500 is now down roughly 24% for the year, but the sell-off, as per Kinahan, has been too orderly to call a bottom. Quoting historical data, he noted:

Earlier this week, the U.S. central bank resorted to a 75 basis points increase in interest rates that pushed the benchmark index officially into the bear market territory.