Here are two charts:
The S&P 500 SPY ETF and the Percent of Stocks ABOVE Their 20-Day Moving Average
As of this writing, just 14% of all stocks are above their 20-day moving average. Just 14%! That is the lowest level since the Covid crash. Individual stocks are getting hit really hard right now. If you don't understand what I mean, I'll present it differently: 86% of all stocks throughout the market are trading below their average price of the last 20 days and just 14% are trading above. What a fast sell-off. No one has been spared except for a few big names and indexes.
The indexes seem just fine. The S&P 500 chart on the left shows that. Yes, markets are down, but not nearly as bad as individual stocks. Let me share a stat that really highlights the carnage for stock pickers today:
Some 400+ stocks are down 20% or more in just the last month of trading. 400+ stocks down 20% or more in just the last month. Whoooooosh. What a correction.
I have no idea why this happens. Or how it occurs. But if you have any ideas please share it in the comments! I also wonder if any savvy fund managers or funds are excited as ever, just watching and waiting to find their next great idea on a massive individual sell-off.
The S&P 500 SPY ETF and the Percent of Stocks ABOVE Their 20-Day Moving Average
As of this writing, just 14% of all stocks are above their 20-day moving average. Just 14%! That is the lowest level since the Covid crash. Individual stocks are getting hit really hard right now. If you don't understand what I mean, I'll present it differently: 86% of all stocks throughout the market are trading below their average price of the last 20 days and just 14% are trading above. What a fast sell-off. No one has been spared except for a few big names and indexes.
The indexes seem just fine. The S&P 500 chart on the left shows that. Yes, markets are down, but not nearly as bad as individual stocks. Let me share a stat that really highlights the carnage for stock pickers today:
Some 400+ stocks are down 20% or more in just the last month of trading. 400+ stocks down 20% or more in just the last month. Whoooooosh. What a correction.
I have no idea why this happens. Or how it occurs. But if you have any ideas please share it in the comments! I also wonder if any savvy fund managers or funds are excited as ever, just watching and waiting to find their next great idea on a massive individual sell-off.
I work at TradingView helping to build charts, tools, and software for everyone interested in financial markets.
Twitter: twitter.com/scheplick
Blog: scheplick.com/
Twitter: twitter.com/scheplick
Blog: scheplick.com/