Why the Nasdaq is (almost) like 1998Trading activity over the past week has the feel of 1998 when stocks suffered a mini-crash. The Russian connection from then (they devalued the ruble) and now is coincidental. It's more that the price moves have a similar feel. I distinctly remember the panic ... [...]
A jump in new lows on the NasdaqDespite Monday's reversal, many more stocks on the Nasdaq exchange touched a 52-week low during the day. Now, more than 30% of stocks on the exchange have plunged to that extreme on the same day. That's the 18th-highest figure since 1996.Even though this was ... [...]
Even more Nasdaq stocks get cut in halfA few weeks ago, we looked at the number of stocks cut in half. It's only gotten worse.As of Friday, 42% of stocks on the Nasdaq were down by half. That's on par with the very worst markets of the past 20 years. Since the 2008 financial crisis, only 20 days ... [...]
Sundial Capital Research is an independent investment research firm dedicated to the application of mass psychology to the financial markets. Sundial publishes the SentimenTrader.com website.
Our focus is not market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence.