There's no fear of missing out on stocks' comeback for retail investors this week. Individual investors have been aggressively buying the January dip since Friday, with four technology names getting the most love. Retail investors scooped up more than $1.3 billion in equities from Friday to Tuesday, according to Vanda Research. This level ranked above the 70 th percentile for the last year. "Since last Friday, retail investors have been buying into the rally, something we hadn't seen since May/June 2020," said Ben Onatibia, senior strategist at Vanda Research. The S & P 500, and the other major averages, have attempted a miniature comeback in February after a dismal January. The first month of 2022 was the S & P 500's worst since March 2020. Plus, the technology-focused Nasdaq was pushed deep into correction territory. The weakness in equities followed increasing signals from the Federal Reserve that it will take aggressive monetary action to slow down historic levels of inflation. Most of the dip-buying was concentrated in broad-market ETFs, but retail investors did stage a significant increase in single stock purchases. However, amateur investors are not buying the single stocks they were a year ago during the GameStop trading frenzy . Instead of buying speculative names since Friday, individual investors are purchasing mega-cap technology stocks, according to Vanda. The so-called TAAN stocks: Tesla , Apple , Advanced Micro Devices and Nvidia , took up 61% of all Nasdaq-100 purchases last week, Vanda noted. Other popular names in the past five days among the retail crowd are Microsoft , Intel , PayPal , Nio , Meta Platforms , SoFi , Ford and General Motors . In terms of digital assets, cryptocurrencies have also fallen out of favor this year, according to Vanda. " The number of derivatives deposit accounts in major crypto-exchanges dropped by roughly 30% since the October peak, revisiting the lows of last summer," said Onatibia.
A Tesla Model Y electric vehicle is displayed on a showroom floor at the Miami Design District on Oct. 21, 2021, in Miami, Florida.
Joe Raedle | Getty Images
There's no fear of missing out on stocks' comeback for retail investors this week.