Typically when you see a big bounce like today after a series of losses, the stocks that lost the most during the pullback will also bounce back the most.  That hasn’t really been the case today.  In the chart below, we’ve broken the S&P 500 into deciles (10 groups of 50 stocks each) based on stock performance during the 9-day losing streak that ended on Friday.  The decile all the way to the left of the chart contains the 50 stocks that held up the best during the 9-day losing streak, the decile all the way to the right contains the 50 stocks that declined the most during the losing streak.  The number shown for each decile represents the average percentage change today for its 50 stocks.  As shown, the 50 best performing stocks during the 9-day pullback are up an average of 1.7% today, while the 50 worst performing stocks during the pullback are up an average of 2.4% today.  That difference of just 70 basis points is about as tight as you’ll see on a day like today.  We would have expected to see the biggest losers during the 9-day losing streak up at least double the biggest winners today, and maybe even more.

decilestoday

 

Print Friendly, PDF & Email