After heading lower in nearly a straight line since last Monday, U.S. equity markets bounced back today with a gain of more than 1%.  And it was the stocks that fell the most over the last six trading days that bounced back the most.  Below we have broken the Russell 1,000 into deciles (10 groups of 100 stocks each) based on stock performance from last Monday (7/20) through the close yesterday.  The 100 stocks in decile 1 below (Best) held up the best during the recent pullback, while the stocks in decile 10 (Worst) fell the most.  In the chart below, we highlight the average performance of the stocks in each decile today.  As shown, the decile of stocks that fell the most during the pullback bounced the most today (+2.1%).  As you go from best to worst, you can see that the gains today get stronger and stronger.  So was this a bounce of the “dead cat” variety or have the lows been put in once again?  Read more of our thoughts on this market by signing up for one of our three Bespoke subscription services.

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