Riding The Seesaw: How Big-Name Stocks I Follow Rebounded After Market Sell-Offs

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 |  Includes: AAPL, AMZN, NFLX, RL, SIRI, SPY
by: SA Editor Rocco Pendola

As the market turned erratic, I wrote several articles highlighting stocks that I felt would not only lead us out of the mess long-term, but would outperform the market on the many rallies that have followed crashes, corrections or whatever term you use to define relatively massive down days.

While those articles highlighted several stocks (e.g., I still love Ralph Lauren (NYSE:RL)), four received the focus of my attention. On the bullish side, Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN). And, on the bearish divide, Netflix (NASDAQ:NFLX) and Sirius XM (NASDAQ:SIRI).

In this article, I take the four days over the last 30 where the Dow Jones Industrial Average fell, at the close, by more than 400 points. I chart how each of the four above-mentioned names performed on that day and then on the subsequent green day(s) that have seemed to follow like clockwork.

Ticker 08/04/2011 Performance 08/05/2011 Performance
Dow Jones Industrial Average -512.76 (4.31%) +60.93 (0.54%)
S&P 500 Index (NYSEARCA:SPY) -5.91 (4.68%) -0.18 (0.15%)
Apple (AAPL) -15.20 (3.87%) -3.75 (0.99%)
Amazon.com (AMZN) -8.48 (4.04%) +1.22 (0.61%)
Netflix (NFLX) -14.23 (5.47%) -4.66 (1.90%)
Sirius XM (SIRI) -0.13 (6.28%) -0.05 (2.58%)
Click to enlarge

Ticker 08/08/2011 Performance 08/09/2011 Performance
Dow Jones Industrial Average -634.76 (5.55%) +429.92 (3.98%)
S&P 500 Index (SPY) -7.82 (6.51%) +5.22 (4.65%)
Apple (AAPL) -20.41 (5.46%) +20.80 (5.89%)
Amazon.com (AMZN) -9.00 (4.44%) +11.39 (5.88%)
Netflix (NFLX) -14.47 (6.00%) +11.16 (4.92%)
Sirius XM (SIRI) -0.24 (12.70%) +0.15 (9.09%)
Click to enlarge

Ticker 08/10/2011 Performance 08/11/2011 Performance 08/12/2011 Performance 08/15/2011 Performance
Dow Jones Industrial Average -519.83 (4.62%) +423.37 (3.95%) +125.71 (1.13%) +213.88 (1.90%)
S&P 500 Index (SPY) -5.19 (4.42%) +5.04 (4.49%) +0.79 (0.67%) +2.50 (2.12%)
Apple (AAPL) -10.32 (2.76%) +10.01 (2.75%) +3.29 (0.88%) +6.42 (1.70%)
Amazon.com (AMZN) -10.96 (5.34%) +4.23 (2.18%) +3.94 (1.99%) +0.65 (0.32%)
Netflix (NFLX) -5.38 (2.26%) +10.71 (4.61%) +0.87 (0.36%) +2.28 (0.93%)
Sirius XM (SIRI) -0.07 (3.89%) +0.13 (7.51%) +0.01 (0.54%) +0.03 (1.60%)
Click to enlarge

Ticker 08/18/2011 Performance 08/19/2011 Performance 08/22/2011 Performance 08/23/2011 Performancee 08/24/2011 Performance
Dow Jones Industrial Average -419.63 (3.68%) -172.93 (1.57%) +37.00 (0.34%) +322.11 (2.97%) +143.95 (1.29%)
S&P 500 Index (SPY) -5.16 (4.31%) -1.87 (1.63%) +0.09 (0.08%) +3.71 (3.29%) +1.64 (1.41%)
Apple (AAPL) -14.39 (3.78%) -10.02 (2.74%) +0.41 (0.12%) +17.16 (4.81%) +2.58 (0.69%)
Amazon.com (AMZN) -13.41 (6.84%) -3.59 (1.97%) -1.39 (0.78%) +16.01 (9.02%) +0.18 (0.09%)
Netflix (NFLX) -14.76 (6.36%) -12.27 (5.64%) +0.00 (0.00%) $14.33 (6.98%) -3.51 (1.60%)
Sirius XM (SIRI) -0.14 (7.29%) -0.01 (0.56%) -0.06 (3.39%) -0.02 (1.17%) +0.06 (3.25%)
Click to enlarge

Looking at it another way, here's how each stock traded after the August 8th rout and where it stood, as of Friday's close:

  • AAPL: $361.69 to $374.74 (+3.61%)
  • AMZN: $196.40 to $208.94 (+6.38%)
  • NFLX: $229.95 to $208.71 (-9.24)
  • SIRI: $1.69 to $1.72 (+1.78%)

As of midday Tuesday, Apple and Amazon continue to show strength in a weak market. The smoke and mirrors continues at Netflix with a nicely-timed counter to last week's bad news. And Sirius XM continues to stagnate, showing persistent signs that it will test $1.50 long before it sees the all-important psychological level of $2 again.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. At the time of this writing, I own no positions in any of the stocks mentioned in this article, however, because I day and swing trade stocks, primarily using technical analysis, I may open and close positions in any of the stocks mentioned, often using options, at any time.