• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

MAPsignals

We map big money.

  • Latest Insights
  • Power of MAP
    • MAP Products
    • MAP System
    • MAP White Papers
    • Videos & Interviews
  • Profit with MAP
  • About
    • About MAP
    • MAP Team
    • Authors
    • MAP System
    • MAP Products
    • Big Money Index
  • Members
    • Get Started With MAP
    • My MAP
    • Big Money Charts
    • MAP View
    • MAP View Options
    • MAP Top 20 Weekly
    • MAP 50
    • Member Updates
    • Platinum Updates
    • Members Only Posts
    • Performance
  • Portal
  • Latest Insights
  • Power of MAP
    • MAP Products
    • MAP System
    • MAP White Papers
    • Videos & Interviews
  • Profit with MAP
  • About
    • About MAP
    • MAP Team
    • Authors
    • MAP System
    • MAP Products
    • Big Money Index
  • Members
    • Get Started With MAP
    • My MAP
    • Big Money Charts
    • MAP View
    • MAP View Options
    • MAP Top 20 Weekly
    • MAP 50
    • Member Updates
    • Platinum Updates
    • Members Only Posts
    • Performance
  • Portal

What a -5% NASDAQ Means Going Forward

September 13, 2022 //  by Jason Bodner//  Leave a Comment

The August 2022 CPI report came out worse than expected today.

Investors clearly don’t like inflation. After a massive stock selloff, many are wondering what a -5% NASDAQ means going forward.

Let’s dive in!

What a -5% NASDAQ Means Going Forward

What a -5% NASDAQ Means Going Forward

In a turn of events, the usual culprits of energy and food were far less of a factor than prior months.  Energy prices fell with the exception of energy services, while food costs didn’t rise as much as in May, June, and July.  The problem however was seemingly everywhere else.  Core inflation rose in 12 of 21 categories being:

  1. All items
  2. Food away from home
  3. Energy services
  4. Utility (piped) gas service
  5. All items less food and energy
  6. Commodities less food and energy commodities
  7. New vehicles
  8. Apparel
  9. Services less energy services
  10. Shelter
  11. Transportation services
  12. Medical care services

Prices fell in 5 of 21 categories being:

  1. Energy
  2. Energy commodities
  3. Gasoline (all types)
  4. Fuel oil(1)
  5. Used cars and trucks

Here is the report summary:

Consumer Price Index Report | September 13, 2022

The truth is, this caught the investor world flat-footed as expectations were for a lower inflation report- not a higher one! This roiled equities, pounding the market with the worst single day finish in the NASDAQ Composite index since June 11, 2020. The NASDAQ Composite index closed on Tuesday September 13th, 2022 with a -5.16% finish.

The immediate question that comes to mind is: what can we expect in the coming days and weeks after such an event?  We must wait for MAPsignals unusual selling data to populate tomorrow, but we can look at similar days of disastrous performance for context.

We looked for all the days in which the NASDAQ Composite closed -5% or worse. Tuesday was the 42nd trading day since 1990 that this occurred. The prior 41 times on average showed very promising forward returns. On average, the index was higher as follows:

  • 1 Day Later +1.6%
  • 1 Month Later +3.5%
  • 3 Months Later +4.2%
  • 6 Months Later +3.8%
  • 9 Months Later +7.5%
  • 12 Months Later +9.5%
  • 24 Months Later +12.3%

It is important to note that as seen below, the results are heavily skewed for the tech bubble burst, 9/11, and the Great Financial Crisis.  All the same, the average results were positive in all time frames:

NASDAQ COMPOSITE DAYS OF -5% OR WORSE FORWARD RETURNS

On that note, as an exercise, we can see how stunning forward returns are when we begin from 2005, which includes the Great Financial Crisis:

NASDAQ COMPOSITE DAYS OF -5% OR WORSE FORWARD RETURNS

Naturally time will tell, but if history is any guide, now is not the time to panic.

Have a great evening!

JB

Jason Bodner
Jason Bodner

Jason is currently co-founder of MAPsignals. His full bio can be found here.

Prior to MAP, he was Head of Derivatives at Cantor Fitzgerald and SVP of Derivatives at Jefferies, LLC.

Spread the word!

Category: All, Special Reports

Previous Post: « Members Only: Market Volatility Update 9-13-2022
Next Post: Best Indicator for Finding Outlier Stocks Best Indicator for Finding Outlier Stocks»

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Get Big Money Insights for FREE

Want to know where the Big Money is headed?

Just enter your email address below. You'll get our FREE NEWSLETTER sent directly to your inbox.

We call it Big Money Insights... It’s your weekly sneak peek at the powerful market-moving forces that are hidden from 99% of investors.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Categories

  • All
  • Big Money Insights Weekly
  • Big Money Series
  • Macro Insights
  • MAP In The Media
  • Members Only
  • Performance
  • Podcast
  • Special Reports
  • Stocks
  • Videos & Interviews
  • White Papers

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018

Follow us on Twitter

MAPsignals Follow 1,449 1,070

MAPsignals is a data platform that tracks institutional money flows in stocks and ETFs. Sign up for free insights here: https://t.co/SaAVHjKC9J

mapsignals
mapsignals avatar; MAPsignals @mapsignals ·
13h 1622987016957820928

One of my favorite #dividend #stocks having a day - Skyworks Solutions $SWKS - owned it for years

The $2B buyback is pretty significant given the market cap is sub $19B

#Semiconductors continue to see major inflows

Reply on Twitter 1622987016957820928 Retweet on Twitter 1622987016957820928 0 Like on Twitter 1622987016957820928 2 Twitter 1622987016957820928
Load More...

Footer

© 2021 Mapsignals.com

  • Home
  • Contact & Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Opt-out preferences
  • FAQ

Copyright © 2023 · Mai Law Pro on Genesis Framework · WordPress · Log in

✕
What Happened to Risk Assets White Paper is Here

Get your copy here and take a journey through our thoughts on margin and leverage.

Enter your email address below and you'll get our FREE NEWSLETTER sent directly to your inbox. 

 We call it Big Money Insights... It’s your weekly sneak peek at the powerful market-moving forces that are hidden from 99% of investors.