A Boomerang Bounce For U.S. Stocks
It has been a great week for the US stock market with the S&P 500 ETF (SPY) up 5.9%. Unfortunately, that only gets the market back to where it was trading just over two weeks ago on October 17th! That’s because SPY fell 5.9% from 10/17 through last Friday (10/27).
Right now SPY is stuck in a short-term downtrend after making a series of lower highs and lower lows since the end of July. From a technical perspective, SPY needs to make a “higher high” for things to look more positive. Today, the ETF got stuck as it approached its highs from mid-October, so it’s not going to be easy.
The rally this week has been broad-based, but the best-performing stocks have been the names that did the worst in the 10 days prior. Below we’ve broken the large-cap Russell 1,000 into deciles (10 groups of 100 stocks each) based on stock performance during the market’s decline from 10/17 to 10/27 (last Friday). As shown, the decile of the worst-performing stocks during the 10/17-10/27 pullback is averaging the strongest gains during this week’s rally.
Looking at individual stocks, below are the 30 best-performing names this week in the Russell 1,000. At the top of the list is Roku (ROKU), which is up more than 50%! Another eight stocks are up more than 25% this week, including names like DoorDash (DASH), DraftKings (DKNG), Pinterest (PINS), Paramount (PARA), and Palantir (PLTR). Other noteworthy stocks up big this week include Wayfair (W), Block (SQ), Avis (CAR), Warner Bros. (WBD), Coinbase (COIN), TopBuild (BLD), and even Peloton (PTON).
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Disclaimer: Bespoke Investment Group, LLC believes all information contained in this report to be accurate, but we do not guarantee its accuracy. None of the information in this report or any ...
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