What it means for stocks now that pros are taking back control of retail day traders

The “grand reopening deal” is being led by investment professionals at the expense of retail day traders who became interested in the stock market during this year’s “WallStreetBets revolution,” CNBC’s “Mad Money” host Jim Cramer said Friday.

“The money managers have taken back control of the market. And they don’t want to pay 100 times the sales; they’d rather pay 10 times the profit,” Cramer said in “Squawk on the Street,” noting that pros have been avoiding high-flyers lately. high valuations in favor of less conspicuous names related to the relaxation of the Covid corporate restrictions.

Day trading in the 1990s – which made a comeback earlier this year, exemplified by the GameStop frenzy – had led to a surge in trading volume in recent months. But the volume is now starting to decline, as noted this week by CNBC’s Bob Pisani, raising questions about whether retail investors are throwing in the towel.