Thursday it’s F5 Networks . Wednesday it was Cree. Last week: Coinstar.
One-day drops of 10 percent, 20 percent—even 50 percent—aren’t uncommon in these (I like to call) high-wire-act names.
If you were ever looking for proof of a momentum-driven market, otherwise known as a lack of conviction in weak hands, these drops prove it.
I asked Factset Research Systems to dig deeper. Here’s what they found.
So far this year—as of Wednesday:
- 173 stocks fell 10 to 20 percent.
- 10 fell 20 to 30 percent.
- 5 fell more than 30 percent.
But the research also confirmed what we suspected: That the better the market's performance, the more and bigger the blowups—especially if the data is broken down on a weekly basis. And during strong rallies, the blowups are more common than during long, bearish stretches.