The Best Have Been the Worst

The average S&P 500 stock is down 6.75% since the 10/19 closing high for the index. We broke up the index into deciles (10 groups of 50 stocks) based on stock performance from the 3/9 low through 10/19 to see how these stocks have performed during the pullback. As shown below, the 50 stocks that were up the most during the rally have averaged a decline of 12.6%, which is the biggest decline of any decile. Clearly investors have been selling the big winners recently.

click to enlarge

Comments

[HERO1957:]

People are getting nervous.

Nov 03 11:33 PM

[enigmaman:]

Yes people are getting nervous there is no doubt, but what people, is it the so called smart money (MM) or the so called dumb money (MS), would seem like higher volume days consist of the MM locking in profits to pretty up clients statements, better to be safe then sorry
"The best friends are in ones purse"

Nov 04 07:47 AM