The market rout continued this week; the S&P 500 lost -14.98%, it’s now down -31.67% in the last month and -28.66% year to date.
Volatility continues, the 10-day average true range for the $SPY is $21.36, that’s a 9.3% daily range, unprecedented volatility.
FAANG as unit is down -22% from its 2/19/2020 high ($FB, $AAPL $AMZN $NFLX $GOOGL).
Six $QQQ names are positive this year; $REGN $GILD $CTXS $JD $NFLX and $TSLA, which is up 2.20% year to date but down -55.88% from its 52-week high printed a few weeks ago. On the flip side, the worst performers $UAL -72% $AAL -63% $EXPE -55%, no surprise here, the virus has hit the travel sector hard.
Not a single country is bucking the trend.
Here is this week’s biggest winners (price above $3); $APRN $BLPH $BMRA $FRGI $STSA, there’s a lot to learn by studying this list.
The bottom line is that the market continues to be dominated by the news coming from the Coronavirus front. At some point, the market will find a level where it feels comfortable enough to start discounting and ignoring bad news; we are not there yet.
Like every other crisis that we’ve experienced, we will get through this; although this sell-off has been fast and furious unlike any other, I believe that the opportunities that await for us on the other side are going to be HUGE.
Take a look at this chart and ask yourself; when is the best time to get excited about the future, after the market has risen +30% or after the market has gone through a severe correction?
“And heaven knows, the psychology of the investing public changes–cycling from the most blissed-out euphoria about equities to the most abject terror and then back again, always at the wrong times.”–Nick Murray.
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