Tuesday, November 21, 2017

What happens to stocks after an all time high?

Based on daily AMZN closing prices from 07/07/97 to 11/14/17 the issue made all time highs 249 times.  The issue continued to rally on the following day 128 times.  The largest following rally occurred on 11/23/98 when the issue closed higher by 21 percent.  The largest following correction occurred on 09/15/97 when the issue closed lower by -16 percent.

Based on daily BABA closing prices from 10/22/14 to 11/03/17 the issue made all time highs 44 times.  The issue continued to rally on the following day 26 times.  The largest following rally occurred on 11/04/14 when the issue closed higher by 4 percent.  The largest following correction occurred on 11/11/14 when the issue closed lower by -4 percent.

Based on daily PYPL closing prices from 07/15/15 to 11/20/17 the issue made all time highs 59 times.  The issue continued to rally on the following day 22 times.  The largest following rally occurred on 04/27/17 when the issue closed higher by 6 percent.  The largest following correction occurred on 07/21/15 when the issue closed lower by -3 percent.

Based on daily QQQ closing prices from 03/16/99 to 11/17/17 the issue made all time highs 154 times.  The issue continued to rally on the following day 83 times.  The largest following rally occurred on 12/21/99 when the issue closed higher by 4 percent.  The largest following correction occurred on 01/04/00 when the issue closed lower by -7 percent.

Based on daily SPY closing prices from 02/02/93 to 11/08/17 the issue made all time highs 476 times.  The issue continued to rally on the following day 221 times.  The largest following rally occurred on 06/12/97 when the issue closed higher by 2 percent.  The largest following correction occurred on 01/04/00 when the issue closed lower by -4 percent.

Based on daily SQ closing prices from 03/29/16 to 11/21/17 the issue made all time highs 58 times.  The issue continued to rally on the following day 34 times.  The largest following rally occurred on 03/30/16 when the issue closed higher by 9 percent.  The largest following correction occurred on 06/09/17 when the issue closed lower by -7 percent.


Read More: What happens a month after an all time high...