A View From The Bottom

We’ve seen some explosive moves since the S&P 500 bottomed on January 20th. 241 S&P 500 stocks are up double digits, 29 stocks are up more than 20%, and 8 stocks are up more than 50%. Below is a further dissection of recent S&P 500 performance from the bottom.

Here are the returns of the S&P 500 broken down by market cap, from largest to smallest. The smaller stocks have done significantly better.

market cap

Here are the returns of the S&P 500 broken down by 2015 performance, from best to worst. The worst performing stocks from 2015 have been the best performing stocks during this recent rally.

perf

Here are the returns of the S&P 500 broken down by short interest, from most heavily shorted to least heavily shorted. The most heavily shorted stocks have seen significant outperformance.

short int

Here are the returns of the S&P 500 broken down by sector. Energy has done really well while biotechs have lagged significantly; massive mean reversion.

sector

The recent move is pretty remarkable, I for one did not see this coming. One of the most notable differences I see in this rally versus all of the other ones we’ve experienced over the past few years is that those came within the context of a defined uptrend, which clearly no longer exists. The next few weeks, like every other “next few weeks”, should be really interesting.

 

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