Day traders say market gains are retail noise ready to break, not a real rally

Traders on r/RealDayTrading are still debating why “this market continues to grind higher,” and skeptics are seeing a side few analysts want to acknowledge. One user summed it up:

“Even better is to slowly grind higher while waiting for that one trade to finally pay off”
https://www.reddit.com/r/RealDayTrading/comments/1m8bi3n/why_this_market_continues_to_grind_higher/

That’s the sub’s take: slow and steady gains create the illusion of strength, waiting for a breakout like META to make players look prescient. It reflects a broader sentiment that retail investors and meme stock hype are propping up prices, not actual fundamentals.

Other traders warn against trusting retail exuberance alone. A wave of meme stocks in July—shares like Kohl’s, GoPro, Krispy Kreme—roared on social media but pulled back by session’s end.
https://www.reuters.com/business/meme-stock-surge-underlines-market-froth-mostly-centred-retail-investors-2025-07-24/

That aligns with the r/RealDayTrading crowd: they see retail behavior—not real earnings—as fueling short squeezes. And the long grind sideways is the calm before volatility.

Here’s what most headlines miss:

The uncomfortable truth? This isn’t broad investor conviction. It’s a plodding rally powered by chatter, gamma squeezes, and retail psychology. When the catalyst finally hits, up or down, market behavior could flip hard in either direction.

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