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Record Highs? 47% Of Nasdaq Stocks In Bear Market, Down 24% On Average
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.
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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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.
Who runs Bartertown bitch?
Nothing to see here. Stay long and move along
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.
Lemme guess, the shittier the fundOmentals the higher the price?
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/
AAPL has a weight in the S&P of around 2.4%. This hides losses well when looking at the composite price.
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.
Maybe 99.99% down and then the AliBaba IPO lifts the whole index higher
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?
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.
Don't waste your time, I know I certainly have better things to do and trade is the only thing that matters, period.
Not far from it now; all the FED has to do is buy the components of the major indices.
long Alibaba - the market needs bagholders!!!!!!!!!!!!!!!!!!
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 !!!
I prefer television for sheep, not a mirage.
Got to keep them calm before slaughter, otherwise the mutton is acidic.
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?
The FED's programmers need to diversify bitchez.
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.
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.
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.
Gee, thanks.
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
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...
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?
i'm watching three promising, growing faster than 25% annually, small caps that are near 5 year lows. i have to start buying.
Soon the HFT's will be driving the market using one stock....
40 thieves!!