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These 5 Club stocks had the largest intraday rebounds during Thursday’s wild comeback rally

Wall Street went on a wild and historic ride Thursday , staging a massive intraday comeback despite hotter-than-expected inflation data released in the premarket. The moves in some stocks in Jim Cramer’s Charitable Trust were even more dramatic, including two tech names that rallied nearly 11% off their session lows based on their closing prices. The Dow Jones Industrial Average on Thursday advanced around 828 points, or 2.83%, after being down over 500 points earlier in the session. The S & P 500 registered its fifth-largest intraday reversal from a session low in its history, according to SentimenTrader. It rose 2.6% on the day, after being down around 2.4% at its trough. The tech-heavy Nasdaq, meanwhile, saw its fourth-biggest intraday swing off a low in history, per SentimenTrader. It’s hard to pin down an exact reason for Thursday’s tape and, especially, to know whether the rally will be sustained. The S & P 500 also had been down for six days in a row, so maybe sentiment had simply gotten too negative. The S & P Oscillator as of Wednesday’s close had finally reached oversold conditions. Some believe technical factors may have played a role in the magnitude of the swings Thursday. A few other factors may have foreshadowed a bounce, as Jim discussed Thursday night on “Mad Money.” Still, even as we’ve grown accustom to volatility this year, Thursday’s index-level moves were quite stunning; so too were the moves in some Club holdings. To help put the wildness into perspective, take a look at the five Club stocks with the biggest intraday reversals Thursday. The common theme across the five stocks? All tech. More specifically, four of the five were semiconductor companies, which have been among the worst-performing portfolio stocks in October. All four also have a beta greater than 1, meaning they’re generally more volatile than the overall market. It’s not necessarily a surprise they had the biggest reversal. Here’s what Marvell Technology ‘s (MRVL) 10.85% turnaround off its Thursday low looks like: Conversely, take a look at Thursday’s chart looked for Club holding Johnson & Johnson (JNJ), a classic defensive stock. It also opened the session lower, before turning higher and finishing up 1.5% at $165.15 per share. However, based on Thursday’s close, it rose only 2.74% off its session low, the smallest reversal of any stock in Cramer’s Trust. This reflects J & J’s defensive investment characteristics, which are part of the reason the Club took a stake in the company earlier this year. At its lows Thursday, J & J shares were only down about 1.2%. Bottom line We’re not trying read too much into Thursday’s one-day moves, necessarily, and make a prediction on where the market may go from here. Volatile, dramatic swings like this should always be processed in a measured way. If anything, though, it speaks to a main theme of the Club’s October “Monthly Meeting,” which happened to take place Thursday while the comeback rally roared: the perils of trying to time an unpredictable market . Timing the market is simply too difficult, requiring investors to be right twice: picking the right time to head to the exits and spotting the right time to step back in. For the Club, we’re staying in the market, as Jim said emphatically Thursday. We’re maintaining some cash, and trying to look for attractive opportunities to put it to work. We’re also being mindful of the need to trim in some areas — whether it’s because a position is getting a little large for our liking or facts change, requiring a more cautious outlook on a company or entire sector . Will we look back down the road and realize Thursday was a turning point in this bear market? Who can say. There could be more downside ahead. We can’t control where the market is headed, but we can control how we approach the inherent uncertainty of investing. Thursday’s stunning reversal demonstrated just how hard it is to know what’s around the corner. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Traders work on the floor of the New York Stock Exchange (NYSE) on October 07, 2022 in New York City.
Spencer Platt | Getty Images

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