BLD - A Boomerang Bounce For U.S. Stocks
2023-11-04 00:30:00 ET
Summary
- It has been a great week for the US stock market with the S&P 500 ETF (SPY) up 5.9%.
- 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.
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. On Friday, 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 1000 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 1000. 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 ).
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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A Boomerang Bounce For U.S. Stocks