1 In 5 US Stocks Now In Bear Market

Tyler Durden's picture

With the major US equity markets within 1-2% of their record highs, Gavekal Capital notes that underneath the headline indices, stock markets are extremely tumultuous. Rather stunningly 21% of MSCI USA stocks are at least 20% off their recent highs, and 68% of Canadian stocks are in bear markets, but the real carnage is taking place in Emerging Markets.

This is only the third time since the summer of 2012 that this many stocks are in a bear market. The most interesting aspect of this internal correction is the fact that the headline index is a mere 1.8% off the 200-day high. On October 10, 2014 when 21% of MSCI USA stocks were in a bear market, the headline MSCI USA index was 5.4% off the 200-day high. And on November 8, 2012 when 21% of the MSCI USA stocks were in a bear market, the headline index was 6% off the 200-day high.


The pain felt in US stocks is nothing compared to many markets around the world. Just a reminder that this all based on USD performance.

Canadian stocks have been getting pummeled. 68% of Canadian stocks are in a bear market. This is the greatest percentage of stocks in a bear market since 2011.

30% of MSCI Hong Kong stocks are in a bear market and 29% of MSCI Singapore stocks are in a bear market as well.




The true carnage is taking place in the emerging markets, however, where nearly 2/3 of all EM stocks are at least 20% off its 200-day high.

Some of the worst countries in EM are Brazil (82%), China (82%), Indonesia (77%), and Russia (81%).








Source: Gavekal Capital

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Callz d Ballz's picture
"UK gov't: Earth will only have 12-hour warning to deal with massive Sun explosion"

an actual MSM headline while Rome burns...unfucking believable

greenskeeper carl's picture

Good thing all that matters is that apple, google, amazon, and Facebook are doing well, amiright?

Chupacabra-322's picture

1 in 5 US Stocks in Manipulated Ponzi Sceme Market.

There, I fixed it for you.

Ajax_USB_Port_Repair_Service_'s picture

4 in 5 US Stocks in Manipulated Ponzi Sceme Market.

There, I fixed it for you.

38BWD22's picture

I would have to check to be absolutely sure, but I believe most of my stocks are down 20% or more from their peaks.  The few stocks I have left...

g'kar's picture

The new "Most Shorted List" prepared for a squeeze.

ArtOfLife's picture

Carried by apple.

razorthin's picture

Yes, it is now called the Dow Jones Industrial or Dow 1.

biggestbrother's picture

All that FED money is coming back to the US from emerging markets where it went seeking yield.


And THAT MEANS THAT THE FED WILL "raise" rates but the place will be so awash in cash that they wont be able to!  Inflation will take off, exports will decline, the stock market already in cloud cuckoo land will plateau, Real Estate in bubble markets will increase to absurd levels then............


next year.  the whole thing will collapse and interest rates will be at .05%.  Then the Fed will have written itself out of a job. It wont be able to do a thing!

Chuck Knoblauch's picture

Strong dollar = equity bubble

JC-BI's picture
JC-BI (not verified) Jul 29, 2015 8:32 PM

Get ready for when it gets to TURTLE mode.

user2011's picture

Tell them to more shorts.... and then squeeze them to the new dow jone record.  You don't need good finacial reports,  just need a couple of HFT and a bunch of people who shorts the stocks...      US stock market will never go down... it is just a mouse trap.... go low....short squeeze.... relax.....go low... short squeeze.... and repeat to the infinity.

HardlyZero's picture

This is looking real, this following article looks significant.



MACD has already peaked.

20-month EMA Crossover next ?


The Bull Market Is Nearing an End


maxamus's picture

Just goes to show the algo's have gotten better the past 3 years.....