Chart Of The Day: Returns off the lows

August 25, 2022

The average stock on the Nasdaq bounced over 40% off it's lows this summer.

That's a serious squeeze.

But let's remember that a lot of that stuff is junky and had gotten crushed, so of course they'll have strong bounces.

Over on the NYSE, the average bounce has been less pronounced but still got into the high 20s in percentage terms.

So today let's take a look at how each of the S&P Sectors have performed since the list of NYSE new lows peaked 2 months ago:

Consumer Discretionary has really led the way, not just in growth, but across all the broader markets.

Technology is up there too, reinforcing the surge we've seen in growth stocks.

And how about Industrials, arguably the most important sector in the market, batting cleanup?

One thing I'd also like to point out is the strength in Utilities.

Contrary to popular belief, Utilities outperforming the broader markets can be perfectly normal during a strong period for stocks.

Utilities outperformed the whole time during that run from 2004-2007, for example. In fact, Utility stocks doubled the performance of the S&P500 during that period.

So don't let Utilities acting well keep you from owning stocks. It's perfectly normal for them to be doing well in a strong market, and sometimes even outperforming.

That's what stands out to me off the lows. What about you?

Chime in here.

Premium Members make sure to check out the replay of last week's Live Video Conference Call. We had a lot to talk about.

You can also skip right to the Trade Ideas page if you don't want to hear all my rants!

The details for next week's live call will be sent out shortly.

Give us a call at 323-421-7991 if you still don't have access. Or contact us here.

See you in there!

- JC