An Easy Way to Profit From the 24/5 Trading Boom By Lucas Downey, Contributing Editor, TradeSmith Daily One of the biggest trends in markets right now is the expanded trading session. Brokerages Robinhood and Charles Schwab have already announced plans to provide round-the-clock access to many stocks. Certain large stocks and ETFs are already available to trade 24 hours a day, five days a week. I believe this is a great opportunity for investors. While it’s true that initial volumes will be light, thus adding volatility… think of what it’ll do for those rare overnight opportunities. If markets glitch overnight and crash… or a major headline sparks a huge move… now you can actually do something about it! But in that opportunity lies another… More trading options means brokerages will have a greater need for market data providers. And these data providers are set to benefit from increased business during the 24/5 trading boom. Let’s look at one of my favorites… One All-Star Market Data Provider to Keep on Your Radar One of the highest-ranking stocks in the fintech universe is Tradeweb Markets (TW). If you’re unfamiliar with Tradeweb, it offers a vast suite of electronic platforms for rates, credit, equities, and money markets. It currently connects more than 2,800 institutional and retail clients globally. It’s a top-notch operation, and the chart has easily outpaced the S&P 500 the last year. Here we can see on a one-year basis, TW is up 43% compared to the S&P 500’s 32%: 
A move like that means this $29 billion market cap company is doing something right. And what is that something right? Regular readers already know. Tradeweb is a prime example of a stock with the three Power Factors we need to see to love a company. Those are sales and earnings growth… share price growth… and institutional sponsorship. The share price growth is unquestionable. So now let’s look at the business itself… From December 2021 to December 2023, revenues have climbed from just over $1 billion to $1.33 billion. Even better is estimates for December 2025 of over $2 billion. But it’s the bottom line that makes this company a gem. Net income in December 2021 stood at $226.8 million and jumped to $364.4 million by December 2023. That’s more than 50% income growth in just two years. Expectations are even higher. By December 2025, Wall Street expects a whopping $791 million in net income – more than double from where it stands today. With growth like that, it’s no wonder this name has been a favorite for Big Money investors. To show you what I mean, have a look at all of the high-ranking inflow signals we’ve seen in TW shares since 2023. After trading on Wall Street for many years, my colleague Jason Bodner and I fine-tuned our algos to look for these healthy buy signals occurring on top-notch, under-the-radar small caps and mid-caps. Those 15 blue bars on the chart below indicate unusual bullish trading volumes indicative of institutional support for the stock: 
That’s a beautiful chart! And I believe it has plenty more upside in the years to come. I can say that simply by looking at my favorite scoring metric: the Quantum Score. The Quantum Score is our way of turning the three Power Factors into a quantitative, easy-to-read score. Scores between about 60 and 85 are what you want to see – they indicate a stock firing on all cylinders but not yet too overheated. Below, you’ll see how Tradeweb is well into the Green Zone with a Quantum Score of 84.5. The Fundamental factor of 79.2 (measuring fundamental growth) and Technical factor of 88.2 (measuring momentum and institutional buy signals) give us an instant near-term outlook for the shares: BUY. 
As the shift to 24-hour trading becomes commonplace, high-performing data providers like Tradeweb will thrive. But Jason didn’t wait for the 24-hour trading boom to begin before he recommended TW. Using the Quantum Score, he was able to spot TW back in 2023 and add it to his model portfolio, giving subscribers the opportunity to jump on this great name before it became hot. While TW is above the buy-up-to-price currently, I still see this name as a company to keep on your radar as more and more brokerage houses shift to 24-hour trading. This is the quiet way to potentially benefit from the round-the-clock trading boom. Last thing: If you’re like me and appreciate under-the-radar companies beaming with institutional support, consider joining Jason’s Quantum Edge Pro service. As an added bonus, you’ll be able to instantly score any stock you like and see if it’s in the Green Zone. Regards, Lucas Downey
Contributing Editor, TradeSmith Daily Note from Ashley Cassell, Managing Editor, TradeSmith Daily: With 24/5 trading, a brand-new moneymaking strategy called zero-day options is more important than ever. Technically, any option can be a zero-day option if it has less than one day until expiration. But on major indexes like the S&P 500 and the Nasdaq 100, there are now daily options listed that you can trade. And last week, former CBOE options trader Jonathan Rose held a live strategy summit where he showed viewers how to use these options to turn one-day market moves into 5-to-1 gains (or more), time and again. In this webinar alone, called One-Day Winners, Jonathan gives you everything you need to get started: 
He even walked you through his Black Friday trade as an example of how this can work for you. You can watch a replay of the event here to learn Jonathan’s five-step strategy for trading this new $1 trillion-per-day market. Note, though, that today’s the last day this replay will be available online. So make sure you check it out. You definitely don’t want to miss this opportunity to get into the exploding market for zero-day options. |
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