The Fastest Recovery Ever

Remember two Mondays ago, when the Nikkei had its second-worst day ever and the S&P 500 opened down 4%?

It turns out, with the benefit of hindsight, that the panic was overblown. The market gained it all back in four days, and now we’re just 1% from a new high for the S&P 500.

The custodian’s websites not working that morning probably saved investors billions of dollars —not you, of course, but those looking to sell.

If it feels like this was a really quick recovery, then your feelings are correct. I had chart kid look back at the fastest recoveries from corrections going back as long as possible for the Nasdaq. Why not the S&P 500? Because I’m dumb. I meant to use the S&P 500, but the tweet I shared with him referenced the Nasdaq.

Anyway, Matt looked at the number of trading days it took for the Nasdaq to rally 10% from a correction low.* On average, the Nasdaq took 32 days to rally 10% after being in correction territory. This time, it took just eight days, the fastest 10% rally ever given the parameters.

One of the crazier charts from a crazy couple of weeks is the double-long Nvidia ETF. It went from $5.7 billion in total assets down to $3.4 billion then back up to an all-time high of ~$6 billion.

Josh and I are going to cover this and much more on tonight’s What Are Your Thoughts? See you at 5.

*Full-blown bear markets are not included