Wednesday, May 17, 2017

What happens to stocks after a selloff?

Based on daily Nasdaq Index $NDX ($QQQ) closing prices from 05/09/72 to 09/12/16 the issue fell more than two percent 550 times.  The issue continued to fall on the following day 256 times.  The largest following rally occurred on 01/03/01 when the issue closed higher by 14 percent.  The largest following correction occurred on 10/19/87 when the issue closed lower by -11 percent.

Based on daily Bank of America $BAC closing prices from 12/15/82 to 03/22/17 the issue fell more than five percent 163 times.  The issue continued to fall on the following day 85 times.  The largest following rally occurred on 01/21/09 when the issue closed higher by 31 percent.  The largest following correction occurred on 01/20/09 when the issue closed lower by -29 percent.

Based on daily Electronic Arts $EA closing prices from 09/25/89 to 02/08/16 the issue fell more than five percent 283 times.  The issue continued to fall on the following day 148 times.  The largest following rally occurred on 10/12/90 when the issue closed higher by 22 percent.  The largest following correction occurred on 06/07/93 when the issue closed lower by -14 percent.

Based on daily Goldman Sachs $GS closing prices from 06/01/99 to 06/27/16 the issue fell more than five percent 84 times.  The issue continued to fall on the following day 37 times.  The largest following rally occurred on 10/13/08 when the issue closed higher by 25 percent.  The largest following correction occurred on 10/10/08 when the issue closed lower by -12 percent.

Based on daily Micron $MU closing prices from 06/15/89 to 12/02/16 the issue fell more than five percent 471 times.  The issue continued to fall on the following day 226 times.  The largest following rally occurred on 04/17/00 when the issue closed higher by 19 percent.  The largest following correction occurred on 11/20/08 when the issue closed lower by -18 percent.

Based on daily Nvidia $NVDA closing prices from 01/26/99 to 04/05/17 the issue fell more than five percent 283 times.  The issue continued to fall on the following day 142 times.  The largest following rally occurred on 01/03/01 when the issue closed higher by 31 percent.  The largest following correction occurred on 11/08/02 when the issue closed lower by -22 percent.

Based on daily Charles Schwab $SCHW closing prices from 10/14/87 to 02/03/17 the issue fell more than five percent 259 times.  The issue continued to fall on the following day 129 times.  The largest following rally occurred on 01/03/01 when the issue closed higher by 26 percent.  The largest following correction occurred on 08/20/75 when the issue closed lower by -13 percent.

Based on daily Twitter $TWTR closing prices from 11/18/13 to 02/13/17 the issue fell more than five percent 45 times.  The issue continued to fall on the following day 23 times.  The largest following rally occurred on 02/07/14 when the issue closed higher by 9 percent.  The largest following correction occurred on 04/29/15 when the issue closed lower by -9 percent.

Read More: What happens the day after a selloff...

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