Assessing the Damage
Stocks are bouncing back to start this week after an absolutely brutal finish to last week for momentum names that up to last Tuesday had been flying higher for two months straight.
Speaking of flying higher and then falling back down to earth, take a look at last week’s moves in the various space-related stocks that are getting attention ahead of this Friday’s SpaceX IPO:
As investors rotated out of winners like Tech, they piled into more defensive areas like Health Care. While Tech was down nearly 10% from last Wednesday through Friday, Health Care actually rallied 4%. The 13.6 percentage point spread in favor of Health Care over Tech was the widest three-day move since July 25th, 2002!
The Tech-heavy Nasdaq 100 (QQQ) finished the day down 4.8% on Friday. It was just the 25th Friday since QQQ began trading in late 1998 that saw a decline of more than 4%.
In a publication for Bespoke Premium and All Access members earlier, we looked at how QQQ performed in the days, weeks, and months after prior 4%+ Friday declines.
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