From the desk of Willie Delwiche.
The number of issues that traded on the NASDAQ in any given week just prior to COVID was somewhere around 3500. Last week 5500 issues traded on the NASDAQ.
Why It Matters: The number of issues trading on the NASDAQ topped out at over 6000 in 1997. By the time the NASDAQ 100 peaked in 2000, this number was already approaching 5000. As that bubble burst, the number of issues traded on the NASDAQ collapsed (dropping to 3500 by the end of 2003). Listings declined further during the Financial Crisis. The Technology sector has led the way lower in the current bear market and many former higher flyers are trading at pennies on the dollar. But listings on the NASDAQ have actually expanded since the index peaked nearly a year ago. It’s hard to think about the market healing when defunct companies haven’t yet been shown the door.
In this week’s Sentiment Report we take a closer look at how options traders are feeling and what it might take from a sentiment perspective for the stocks to hold true to typical post-midterm election tendencies.
