I have been doing some different screening this weekend. As volatility is high, and no one knows what is going to happen the 2nd of April, “the tariffs day” (well, maybe some know), I have little exposure to the market. Just some shorts (like the one shared the other day, Apple).
So I have time to do some analysis, thanks to the power of TC2000 screening.
I created a simple one. I wanted to know which stocks with a market cap above $10B and some minimum liquidity conditions, have had a fall of at least 40% between recent highs (last 100 bars) and recent lows (last 21 bars).
I got 44 names. Then I want to know which of them are really close to the recent lows (not over 3%). And this is the list.
16 names. 12 of them are within the technology sector, and most of them are in the semiconductors or AI related industry. So the big drops of the big caps are the normal leading industry. This doesn´t look very good, does it?
Ok, let’s forget that screener. From the biggest 25 stocks by market cap, which ones are at or within 2% of the recent lows?
3 of the “Mag7” are at recent lows. Amazon barely 2% above them. Not in that screenshot, but…Apple and Nvidia 4% above recent lows, and Tesla 20% above (interesting one also because of the Auto tariffs announced recently).
We see also WMT, JNJ and MRK almost at recent lows. This means also “defensive” stocks are being sold.
Within this Top Cap, we see META at the 200SMA, JNJ and WMT still above it.
Summarizing, a lot of damage has already been done. Is it over? The easy answer is “who knows, big event day this week”.
Our task as traders is not to guess, but to react. If we have bottomed, we will have chances to jump in when setups show up. If we keep correcting and having a bear year, know that volatility will be a main factor, so trade accordingly.
Have a great trading week!