The Most Important Stock To Watch This Week - Wednesday, Sept. 8

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Up markets, down markets - there's always a stock moving somewhere, and often enough it's moving under the radar. That's why I share my watch lists. This week's list, though, is a little shorter than most, because right now, it's all about one stock.

This company has played a bigger and bigger role over the past two years. It's not quite systemically important, like the TBTF banks, but it's been the doorway to wealth for millions of people.

I really want to watch how it trades over the next few sessions, and I think you should, too. We're getting close to "go time," when it'll be time to leap on the stock, so here's the level to look for - and a trade idea that could get you in at an even better price.

All Good in the HOOD?

Robinhood Markets Inc. (HOOD) had a less-than-smooth first month of trading after its IPO in July. It started off well enough, when the stock rocketed more than 105% in the first few trading sessions only to drop more than 30% in a trading day. The stock has been drifting lower since Aug. 24, but the selling accelerated following an unusual interview last week.

U.S. Securities and Exchange Chair Gary Gensler, speaking to Barron's magazine, said the watchdog may consider banning the practice of payment for order flow (PFOF). Robinhood has already found itself in regulatory crosshairs as the poster child for PFOF, not to mention the "game-ification" of investing and trading.

If you haven't heard of PFOF, you will. It's Robinhood's bread and butter, and how it, Fidelity, Charles Schwab, and TD Ameritrade can provide commission-free trading. In a nutshell, the discount brokerages provide a customer-facing platform whereby you can place your trade orders and the back office of the brokerages handles the money vs. securities transaction.

But none of these brokerages are trading shops, which means they're not taking customer orders and matching them up with buyers and sellers, which is to say they're not "market makers."

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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