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Record Highs? 47% Of Nasdaq Stocks In Bear Market, Down 24% On Average

Tyler Durden's picture




 

With the S&P 500 hitting fresh record highs day after day (apart from last week), everything must be great, right? Wrong! As we have noted previously, the leadership in this market is becoming more and more narrowly focused as stunningly 47% of Nasdaq Composite stocks are down at least 20% from their highs with the average stock in the index in a bear market (down 24%). The same is true for the Russell 2000, with over 40% of stocks in bear market and an average drop from recent highs of 22%. By contrast only 31 names in the S&P 500 have seen drops of 20% or more this year. It appears, just as there has been an up-in-quality rotation in credit markets, so stock investors appear to have rotated into momentum winners, chasing returns in an ever-more narrow group of extreme beta stocks.

 

 

As Bloomberg adds,

While rallies in Apple Inc. and Microsoft Corp. have lifted the Nasdaq Composite up 9.4 percent this year, 47 percent of the measure’s stocks are in bear markets, data compiled by Bloomberg show. FireEye Inc. (FEYE), an online security company, sandwich seller Potbelly Corp. and World Wrestling Entertainment Inc. have tumbled more than 50 percent from their 52-week highs.

 

“A lot of stocks have actually made significant declines,” David James, director of research at Alpha, Ohio-based James Investment Research Inc., which oversees more than $5 billion, said by phone on Sept. 9. “Most people see the record highs on the S&P 500 and that makes them feel like, ‘Oh, the market is doing just fine,’’ without recognizing that most stocks really are not participating to that degree.”

Source: Bloomberg

 

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Mon, 09/15/2014 - 09:09 | 5218311 SoilMyselfRotten
SoilMyselfRotten's picture

And gold runs up in pre-market only to be horse-collared back down. Haven't seen this story play out every day for the last month.

Mon, 09/15/2014 - 09:16 | 5218327 GetZeeGold
GetZeeGold's picture

 

 

Who runs Bartertown bitch?

Mon, 09/15/2014 - 09:28 | 5218350 WarHorse
WarHorse's picture

Nothing to see here.  Stay long and move along

Mon, 09/15/2014 - 09:50 | 5218400 Divided States ...
Divided States of America's picture

Wow, even the stock market is exhibiting the true conditions of the economy...mega cap stocks aka the 1% gets BIGGER/RICHER while the smaller cap stocks aka the rest of the 99% gets SMALLER/SCREWED.

Mon, 09/15/2014 - 09:39 | 5218384 booboo
booboo's picture

Lemme guess, the shittier the fundOmentals the higher the price?

Mon, 09/15/2014 - 13:22 | 5219121 Burticus
Burticus's picture

Fundamentals?!  We don't need no stinkin' fundamentals!!!  Vamanos (central banks), volver al trabajo!

You must have missed WB7's recent portrayal of the Kenyan Usurper wearing his Mexican sombrero, or you would know this already:

https://www.flickr.com/photos/expd/15233644051/in/photostream/

Mon, 09/15/2014 - 16:25 | 5219875 DetectiveStern
DetectiveStern's picture

AAPL has a weight in the S&P of around 2.4%. This hides losses well when looking at the composite price.

Mon, 09/15/2014 - 09:11 | 5218322 NoDebt
NoDebt's picture

Meh.  I'm waiting for the day that 100% of the individual stocks are down and the index is still up.  Scoff at this idea at your peril.

Mon, 09/15/2014 - 09:24 | 5218344 SoilMyselfRotten
SoilMyselfRotten's picture

Maybe 99.99% down and then the AliBaba IPO lifts the whole index higher

Mon, 09/15/2014 - 09:45 | 5218395 LawsofPhysics
LawsofPhysics's picture

Yep, especially once you consider the liabilities and real value of the paper that those stocks are priced in.  Why don't people get this?

Mon, 09/15/2014 - 10:37 | 5218510 PT
PT's picture

Sometimes the mere mention that numbers even exist is enough to put people into some kind of epileptic siezure.

Just say to them, "Two", and they run away, screaming in horror.
Tell 'em that "one plus two equals three" and they just stand there in a paralytic trance, before quickly changing the subject.
A lot of those people have jobs and cars and live in houses.  I try to figure out what they know that I don't.

Mon, 09/15/2014 - 11:11 | 5218611 LawsofPhysics
LawsofPhysics's picture

Don't waste your time, I know I certainly have better things to do and trade is the only thing that matters, period.

Mon, 09/15/2014 - 10:18 | 5218460 ebworthen
ebworthen's picture

Not far from it now; all the FED has to do is buy the components of the major indices.

Mon, 09/15/2014 - 09:14 | 5218324 orangegeek
orangegeek's picture

long Alibaba - the market needs bagholders!!!!!!!!!!!!!!!!!!

Mon, 09/15/2014 - 09:17 | 5218328 Seasmoke
Seasmoke's picture

No surprises. I don't know anyone who is actually benefiting from the stock market. Even the people still in it. It's all a mirage !!!

 

 

Mon, 09/15/2014 - 09:24 | 5218343 Winston Churchill
Winston Churchill's picture

I prefer television for sheep, not a mirage.

Got to keep them calm before slaughter, otherwise the mutton is acidic.

Mon, 09/15/2014 - 09:24 | 5218346 NoPension
NoPension's picture

Zuckerberg is smiling.

Guys like Carnegie and Rockefellar must be rolling over in their graves. They actually had had to build things and employ people to gain vast riches. We are all going to eat and put a roof over our heads facefucking?

Mon, 09/15/2014 - 09:27 | 5218351 q99x2
q99x2's picture

The FED's programmers need to diversify bitchez.

Mon, 09/15/2014 - 09:32 | 5218365 Temerity Trader
Temerity Trader's picture

The final collapse will begin in Silicon Valley. For forty years it has been one huge party. There are already signs including more and more layoffs. Just watch the spill-down effect on mega-inflated property values in the area when all the twenty-somethings go from making $125k/yr to write code for Facebook, to $25k at Wal-Mart. It will be devastating to the BMW dealers and all the high-end retailers. Even Apple mania will end ugly. Software engineers get paid 1/4 as much in India and it’s all about the bottom line.  Nearly all the hardware manufacturing has migrated to Asia and is also being automated.  Look out below…no way back.

Mon, 09/15/2014 - 09:37 | 5218381 NoPension
NoPension's picture

I can actually fix a BMW. And unclog a toilet. Fix a shorted circuit.
Will my skills be valued? Or will I die first.

It would be sweet to pack it up the ass ( metaphorically ) of these metrosexual masters of the universe swarmy cocksuckers.

Mon, 09/15/2014 - 09:43 | 5218393 LawsofPhysics
LawsofPhysics's picture

Good question, but consider that question in light of how much the paper-pushers are compensated in modern society.

That compensation can buy a lot of protection and real resources...

well, at least until the paper is rejected by everyone, by not before.

This is why demographics matter.  In other words, if you are a white male who cannot speak spanish or chinese I would postulate that the answer to your question is; sorry, you will most definitely die first.

Mon, 09/15/2014 - 09:59 | 5218418 NoPension
NoPension's picture

Gee, thanks.

Mon, 09/15/2014 - 12:22 | 5218892 StupidEarthlings
StupidEarthlings's picture

Amen to that sht yo.

My girl works for a software co in the northeast..that employs 5 people here..just for billing n sales..n such. The actual workers(about 80 -100) are in packistan. The owner is also packistani but he lives in the states..and takes every single advantage given to him by the us government.  

I cant believe that there even IS a silicon valley still.

 

 

I

Mon, 09/15/2014 - 09:40 | 5218388 LawsofPhysics
LawsofPhysics's picture

This is irrelevant, aside from that funny thing about exponential equations...

Specifically the energy returned on energy invested.

It wasn't that long ago that humans spent 100% of their time and effort on feeding themselves...

Mon, 09/15/2014 - 10:36 | 5218509 Son of Loki
Son of Loki's picture

The guy on the money show this weekend said the marklet is up about 200% since it's drop and he implied a >50% correction and warned investors.

 

He might be right. Very Bullish, right?

Mon, 09/15/2014 - 12:02 | 5218800 besnook
besnook's picture

i'm watching three promising, growing faster than 25% annually, small caps that are near 5 year lows. i have to start buying.

Mon, 09/15/2014 - 12:40 | 5218972 KnuckleDragger-X
KnuckleDragger-X's picture

Soon the HFT's will be driving the market using one stock....

Mon, 09/15/2014 - 14:39 | 5219416 Rouge Trader
Rouge Trader's picture

40 thieves!! 

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