They are not immune to pullbacks, but I would use pullbacks opportunistically.
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"When you look throughout history, these pandemics tend to be short-term pullbacks and they tend to be buyable pullbacks," Tepper said.
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I would, however, agree that it's a buy on pullbacks.
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"So I'd be buying any pullbacks," the technical analyst said.
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Source: CoinMarketCap Bitcoin has tended to recover quickly from pullbacks.
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She expects that the market will continue to vacillate in a pattern of "small pullbacks, little rallies, small pullbacks, little rallies," until more information about expected tax policy reform comes from the Trump administration.
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However, it pays to buy Amazon on the pullbacks, he said.
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He recommends investors buy pullbacks rather than try to time them.
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Pullbacks might run into resistance in the $1.2957 to $1.3000 region.
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Essentially, these pullbacks are short term rather than long term trends.
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"I would expect to see some bouts of pullbacks," Sonders said.
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Instead, he said the fund usually waits for much larger pullbacks.
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He notes that any pullbacks should be used as buying opportunities.
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Many people own them simply to hedge against big pullbacks in stocks.
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But the voluntary pullbacks have incensed his Ukrainian nationalist opposition at home.
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"Pullbacks to the 200-day moving average are not unusual," said Sluymer.
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The cryptocurrency dropped below $10,000 as other digital currencies saw similar pullbacks.
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Yet two pullbacks of more than 1 percent in S&P 500 index .
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"The market is still inclined to buy pullbacks in dollar/yen," said Serebriakov.
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Despite mounting global geopolitical concerns, the market continues to rally without substantial pullbacks.
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Pullbacks to the value of this trend line near 22,200 are entry opportunities.
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In turn, any pullbacks are buying opportunities for a continuation of the uptrend.
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Both and ethereum have hit record highs recently, and have both seen pullbacks.
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Stoltzfus is using pullbacks as opportunities to buy cyclicals including industrials and financials.
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On those pullbacks though, we would be adding to these real solid positions.
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We would use any of these pullbacks to buy and add to exposure.
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In Asia afternoon trade, oil prices continued to see pullbacks after yesterday's rally.
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Besides, pullbacks are normal, said Morgan, chief investment officer at Sandy Spring Trust.
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But Yamada also believes that the pullbacks could lead to another breakout for stocks.
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He noted that after 27 sessions and 81 sessions we saw two similar pullbacks.
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"Pullbacks are for buying," said Saut, who already has put together a shopping list.
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Dan Wasiolek, an analyst at Morningstar, said these pullbacks could be short-lived, however.
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He's been adamant — even during pullbacks — that the current bull market has years left.
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But because they aren't built on fundamentals, they make markets vulnerable to sudden pullbacks.
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"On average, midterm election years have pullbacks, particularly in the summer months," Chiavarone said.
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"We've had any number of very volatile pullbacks, scary ones at that," he added.
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Pullbacks in mortgages and SMB lending will put pressure on community banks and credit unions.
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Bank of America noted today that 5 percent pullbacks typically occur three times a year.
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While bitcoin has seen a recent rally, previous peaks have seen sharp pullbacks in prices.
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And Nvidia does get pullbacks, usually because someone slags it for being up too much.
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That is a reversal from recent years when investors would buy the smallest of pullbacks.
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Another way to think about these market pullbacks is to view them as a sale.
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Gordon describes the trend as two pullbacks in succession that were followed by big rallies.
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Clissold contended the second half of pre-election years carry higher probability of deeper pullbacks.
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"We might see multiple 5% pullbacks in 2020," he told CNBC's "Trading Nation" on Wednesday.
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Even with the potential for pullbacks, Wren remains bullish on the equities market this year.
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Tumbling yields can signal global growth concerns from investors and fuel sharp pullbacks in equity markets.
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We're certainly not expecting any major pullback because we continue to see these pullbacks bought quickly.
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Instead of worrying about pullbacks, Wall Street bull Tony Dwyer suggests investors should be buying stocks.
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While no one is calling for a market nosedive any time soon, pullbacks are largely unpredictable.
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"Prior resistance levels become support, so our view is ... buy some more on pullbacks," he said.
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The move comes on the heels of pullbacks from other major insurers, including UnitedHealthcare and Humana.
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From here, we are closely watching for any potential pullbacks, which happen from time to time.
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"We could have a number of periods of pullbacks," said Kate Moore, BlackRock chief equity strategist.
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Two other major national carriers have announced significant pullbacks from the exchange markets because of losses.
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"Generally speaking, the long-term trend is very good," and pullbacks would present buying opportunities, he said.
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Sonders added that the likelihood of temporary corrections or pullbacks increases the longer a bull market persists.
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Credit Agricole strategist Guillaume Tresca attributed recent pullbacks to a mix of dollar strength and domestic risks.
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Fears of a global slowdown have caused sharp pullbacks in the markets over the last few months.
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In general she said it's a good idea to take advantage of pullbacks in consumer discretionary stocks.
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On average, these pullbacks last 203 days and the S&P 500 averages a decline of 8.36%.
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Bespoke looked at all years since 1928 that saw the smallest "drawdowns" — meaning peak-to-trough pullbacks.
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But except for a few pullbacks, the major U.S. stock indexes have taken the news in stride.
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The group is up 53% so far this year, but there were pullbacks in May and August.
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That is a secular theme that turns any of these kinds of pullbacks into long-term buying opportunities.
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"Actually, the bears have been really disappointed by the magnitude and the duration of recent pullbacks," she added.
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Apple's last few pullbacks each lasted for about $2800, meaning the now-$2743 stock could decline to $160.
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Most similar pullbacks have rarely "ended in a V shape," rising straight back up after lows, he said.
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"We could see a number of smaller pullbacks in which we would look to deploy capital," Zidle said.
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So bullish, in fact, that it has now reached levels that are usually followed by short-term pullbacks.
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JPMorgan told investors to buy Starbucks shares on any pullbacks due to the company's long-term earnings growth potential.
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Seymour said those kinds of stocks sold off recently and would look to buy on pullbacks in oil prices.
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However, he sees any pullbacks as an opportunity as the rallies 5 percent on average during the fourth quarter.
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We'd own at least a partial position in SHOP today and look to fill it out with market pullbacks.
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"The hallmark we've seen really for the last 10 years … has been panic and fear on pullbacks," said Detrick.
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In other words, you should stop worrying about whether pullbacks will happen, because we already know that they will.
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Nevertheless, the major large-cap indexes have made on making new highs recently as pullbacks present new buying opportunities.
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In context of recent gains that might give us some corrective pullbacks, as people reduce risk exposure before events.
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Central to his calculations is a cycle of "earnings recessions," or periodic pullbacks separate from more major, economic slumps.
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When similar financial pullbacks occurred at the beginning of 2016, the central bank slowed its policy normalization plan accordingly.
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Even during recent pullbacks, though, the value of Ether has generally continued to gain on Bitcoin in relative terms.
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"We recommend investors use any pullbacks as opportunities to average into shares of quality cyclical companies," the note said.
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LaVorgna said this happens when production is below stock piling, and manufacturers can go too far in their pullbacks.
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"We think the assumption is the bull market is intact and the pullbacks are a buying opportunity," he said.
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After several pullbacks, the S&P 23 stock index had shed roughly 22 percent in a matter of days.
|
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The pullbacks do not affect Anthem's business selling group insurance or Medicaid Advantage and Medicaid plans in those states.
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So I'm projecting a move back up to $2,050 and really would use pullbacks as a chance to buy this.
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"I think we need to just continue to buy strength and not buy corrective pullbacks here," the technical analyst said.
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Data compiled by Bespoke Investment Group also shows these types of minor pullbacks take some time to run their course.
|
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Stocks in Europe and Japan, leaders all year, were in sharp pullbacks and Chinese growth numbers fell a bit short.
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The insurer also has announced less-dramatic pullbacks in selling Obamacare plans in California, Missouri, Georgia, and Virginia next year.
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When we do see volatility, we would be prepared to buy those pullbacks, " Schaffer said Wednesday on CNBC's "Trading Nation.
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Pullbacks tend to last three days, starting with the initial session when the market's high-flying names begin to fall.
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They most certainly are, and indirectly my business could suffer from any potential spending pullbacks they make as a result.
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Until October, oil prices had mostly rallied since hitting 12½-year lows in early 2016, with occasional pullbacks over that period.
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However it is a useful guide to the behavior of price and helps to put the price pullbacks into to context.
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At this point, the pullbacks in these beloved stocks of the anointed consumer-company elite represent minor slippage in powerful uptrends.
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Many say that's cause for concern, as the broader market has seen so few pullbacks this year amid virtually no volatility.
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Market pullbacks with declines of less than 20% have occurred over 100 times since 1946, according to investment firm Guggenheim Funds.
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"You're hearing some notes of caution, but nothing specific regarding pullbacks," said Bill Warlick, an analyst for Fitch, the ratings agency.
|
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Last year's lack of pullbacks and persistent run higher was a slightly less impressive version of 220 (also a postelection year).
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Such pullbacks aren't unusual in a hot market, and many leading market strategists expect 2018 to be a volatile period overall.
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Knapp said since World War II, market corrections fanned by Fed policy changes have resulted in brief pullbacks, averaging about 8%.
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But if you look at its RSI chart, not only is it overbought on a short-term basis, but its weekly RSI chart is overbought, as well, and that shows that on an intermediate-term basis, it's getting to levels where it has been followed by pullbacks in the past … and, in some cases, fairly deep pullbacks.
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"We generally define pullbacks against a rising 200-day moving average as near-term opportunities to buy long-term strength," Wald added.
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Keith Lerner of SunTrust notes that there have been 15 substantial pullbacks since this bull market began in 2009, averaging 9.1 percent.
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The industry isn't immune to market pullbacks, but downturns will be less severe and shorter lived than for other industries, he says.
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"Normally we have pullbacks at least once a year, corrections every year and a bear market every four-plus years," he said.
|
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While midterm election years are typically associated with third quarter pullbacks, his latest indicators suggest the ultimate catalyst could come from abroad.
|
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It is a market truism that nearly all major market pullbacks are caused deliberately or accidentally by central bank's tightening monetary conditions.
|
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He said on pullbacks he would look to buy market leadership, and he likes the iShares EDGE MSCI USA Momentum Factor ETF, MTUM.
|
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Even pullbacks in these markets this year following policies to dampen price gains appear to be reversing on continued demand and limited supply.
|
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This marks the second straight year of pullbacks by a trio of companies normally seen as among the most resilient shale oil producers.
|
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Even with some temporary pullbacks like Facebook after the Cambridge Analytica incident, Zuck and team went on to blow out first quarter earnings.
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Investor Jack Ablin believes it'll be a "sloppy" year for stocks, but he has a strategy to make money anyway: Embrace the pullbacks.
|
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He sold the fund, which depends on market pullbacks for profits, to Federated Investors just as the financial crisis was unfolding in 2008.
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"It seems scary but that's only about 25 percent off the highs and that's well within the confines of normal pullbacks," he said.
|
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" Universal Display: "We're having pullbacks in these high-multiple, high-growth stocks, so now you have to wait for the pullback in OLED.
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Pullbacks ... are normal and healthy, and therefore I'd want to be a buyer on weakness rather than ... chase them way up at these levels.
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He believes that investors should use any pullbacks as buying opportunities, and says that "software and disruptive technologies" are also attractive stocks to own.
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He would also look for companies with great long-term outlooks that have already had pullbacks, like dividend players General Mills, UPS or AbbVie.
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"The vehemence of the bounce after very, very small pullbacks in the price that shows ... buyers remain under the market for now," Sarhan said.
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"Until that shows signs of improving, I'd be a buyer on pullbacks right near $130 and really a seller up near $180," Newton said.
|
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Results undershooting the market's expectations caused some big pullbacks in share prices, with investors particularly impatient with earnings misses in this high-valuation environment.
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He is buying high-momentum stocks, especially within technology, on any pullbacks and lightening up on commodity-exposed sectors such as energy and materials.
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"The airlines [had] double-digit pullbacks and they've been quite resilient on and off since then, and that's what we expect here," she said.
|
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There have only been two pullbacks of more than 5% for the S&P 500 this year versus an average of about three historically.
|
|
Since it was launched in 2002, the indicator has predicted 11 other pullbacks, which had an average drawdown of 12 percent over three months.
|
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That gradual decline has boosted economic growth, along with stock and bond prices, with two notable pullbacks in 2000-33 and the Great Recession.
|
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He would still look to buy pullbacks in Etsy because he likes its momentum, though for a near-term trade he would rather own Amazon.
|
|
And the pullbacks after the previous rallies had different dynamics, the first being a global recession and the second being an extended period of oversupply.
|
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But she cited the recent market pullbacks as having made valuations look more reasonable in the context of the synchronized growth picture that remains strong.
|
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Craig Johnson, chief market technician at Piper Jafray, is bullish on the S&P 500 Index into 2018, and would buy any near-term pullbacks.
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"We're trying to get our clients to buy on these pullbacks," Scott Wren, senior global equity strategist at Wells Fargo, told CNBC's "Futures Now " recently.
|
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Goldman Sachs tallied 12 pullbacks of at least 10 percent since 1976 that did not occur around a recession, including the correction earlier this year.
|
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While there may be some small pullbacks along the way up, he sees the greatest risk for a downturn coming later in 2017 from higher levels.
|
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" For this reason, Wren is advising that investors continue to "buy on any pullbacks" before year's end and concluded in a note to CNBC that "U.
|
|
But Deutsche Bank expected the incident wouldn't impact earnings too much, adding that any share price pullbacks in Macau plays were likely a good buying opportunity.
|
|
The selloff was even weak compared to traditional pullbacks after a long stock rally, like the one the U.S. market has seen for much of 2019.
|
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"Given the lack of volatility and past patterns of pullbacks, now probably isn't the time to be turning up the volume on portfolio risk," he says.
|
|
So, to see if the pullbacks in shares of Caterpillar, Boeing and United Technologies were justified, Cramer called on technician Bob Lang, the founder of ExplosiveOptions.
|
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We believe LYV management has gone out of its way to tell investors that they are not feeling any recession-type pullbacks by concertgoers anywhere globally.
|
|
It wouldn't be surprising of this soft patch in the markets — less severe even than the stunted pullbacks of March and August — has run its course.
|
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As he describes it, he&aposs not taking much of a risk by buying the stocks after a shaky IPO and taking advantage of earnings pullbacks.
|
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"I would definitely be buying the pullbacks, because I think it's certainly, definitely bottomed out, but I don't see too much potential to the upside," Schlossberg said.
|
|
However, it's in a mature phase and therefore there will be more frequent bouts of volatility and pullbacks, Liz Ann Sonders told CNBC's "Power Lunch " on Friday.
|
|
For investors looking to take shelter in a trade war, there are pockets of the market that have done well during huge market pullbacks in the past.
|
|
Likewise, over the course of 24, when yields slanted lower as stocks had one of the gentlest ascents in memory, rising 20 percent with hardly any pullbacks.
|
|
"More specifically, it helps clients not see as sharp of a decline on their statements during periods of pullbacks because they are adding money each month," he says.
|
|
Global bankers are still pumping money into the financial system, and pullbacks have been so short and shallow, investors have been rewarded for ignoring some of these risks.
|
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While this year's performance is impressive, his strategy is susceptible to sharp pullbacks given some of the risks he takes in his investments, said Morningstar analyst Connor Young.
|
|
Mr. Trump says he spent time studying past negotiations, so he might have discovered that North Korea agreed to hotlines and arms pullbacks with South Korea in 1992.
|
|
Denying themselves many of the tools that theater owns exclusively, they offer what is largely a narrated film script, complete with jump cuts, close-ups, pans and pullbacks.
|
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"I think a lot of bullish sentiment has already been rung out of the market," Saut told "Squawk Box, " adding any other stock pullbacks will likely be contained.
|
|
The president has refused to settle for a quick truce anchored by tariff pullbacks and increased purchased of U.S. goods, and has played down the costs of waiting.
|
|
The rise of quantitative and algorithmic trading, aided by persistently low volatility, has made market pullbacks swifter than they used to be, said JCI portfolio manager Alessandro Balsotti.
|
|
Amid the Palestinian uprising, the plan calls for an "end of terror and violence", Israeli troop pullbacks and an Israeli settlement freeze, all leading to final-status negotiations.
|
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Source: Citigroup The model — which takes into account factors such as newsletter sentiment, margin debt and options activity — has had a good track record of predicting pullbacks and surges.
|
|
While Facebook's recent trading has been on the "choppy" side, Maley noted that the stock's ability to hold above $160 on each of its recent pullbacks indicates upward momentum.
|
|
The second, third and fourth quickest 20083% pullbacks all occurred during the Great Depression era in 22008, 22001 and 22008, respectively, according to data from Bank of America Securities.
|
|
"Considering 10-15 percent pullbacks are of the magnitude that has reinvigorated interest in the past, it may be that lower entry points prove the next catalyst," he wrote.
|
|
We use the ANTSSYS trade and analysis method to identify the opportunities as the breakout rally develops and use pullbacks to the newly defined uptrend line as a entry point.
|
|
" Instead, he suggests being a "pretty aggressive buyer on pullbacks in the weeks and months to come" since "good relative and absolute progress" means "the intermediate-term story is there.
|
|
"The yellow metal continues to benefit from safe-haven inflows, which should ensure that any pullbacks are limited ahead of the weekend," OANDA analyst Jeffrey Halley, said in a note.
|
|
But Matt Maley, equity strategist at Miller Tabak, says that such moves are to be expected, and that investors shouldn't be too concerned with any pullbacks in the short term.
|
|
Based on the length of the past pullbacks, the recent drop in Nvidia looks to be complete, according to Gordon, meaning that the stock will mirror past moves and rally.
|
|
"When you don't have a recession, typically pullbacks can be sharp, but they tend to be short," said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.
|
|
Large pullbacks by providers like Anthem Inc and Aetna Inc are unlikely as they each await approval from the administration for proposed merger deals with smaller rivals, some analysts said.
|
|
I've been bullish on crude oil leading into this move and believe pullbacks toward the $67 mark should be bought and investors can utilize puts to protect against downside risk.
|
|
According to Oppenheimer technician Ari Wald, since 1990 when the high yield and 10-year Treasury yield spread has widened, the S&P 500 is more vulnerable to market pullbacks.
|
|
"When you have pullbacks and the dollar strengthens a little bit, people just wait until the pullback is over and then they add to their dollar shorts," BMO's Anderson said.
|
|
"Whenever you see these contagion stories, unless there's some direct connection to the U.S. banks — and there rarely is — you need to treat these pullbacks as buying opportunities," he told investors.
|
|
Given that the two previous rallies in the Newcastle index were both followed by pullbacks of more than 260 percent, is it likely that history will repeat itself this time around?
|
|
The broad index went 310 trading days without consecutive pullbacks of that magnitude, before falling 0.7 percent on Monday and 1 percent on Tuesday, according to data from Bespoke Investment Group.
|
|
There are many different kinds of sell-offs — from garden-variety pullbacks to wholesale breakdowns like the 2008 financial crisis — but the key for investors is knowing why they're occurring, Cramer says.
|
|
O'Hara, who calls himself bullish, says it's important to watch how the bulls react to any potential pullbacks — since it's been a relatively easy ride for them over the past three months.
|
|
Technology companies in particular have taken a huge share — about 40 percent — of the repurchases, important as some of the sector's biggest names like Facebook and Netflix have undergone substantial pullbacks recently.
|
|
"Given that August and September are brutal months where we often get short, sharp pullbacks ... you'll want to watch this $152 level in case Nvidia gives you another buying opportunity," Cramer suggested.
|
|
The trader believes that after seeing two rallies and two pullbacks, Tesla is in the middle of a fifth wave that will see it head up to complete its Elliott wave cycle.
|
|
This approach has the virtue of transparency and ease of use, but it obscures what many veteran investors view as important severe pullbacks since 2009 that reset market valuation and risk appetites.
|
|
Mark Arbeter, president of technical analysis firm Arbeter Investments, pointed to declines in the survey's bullish sentiment the spring of 2015 and late 2015 just before major pullbacks in the S&P 500.
|
|
Such pullbacks, while short-lived have been more common in 2018 than a year ago, prompting more predictions of the end of a market rally that dates back to the 2008 financial crash.
|
|
"Whenever you see these contagion stories, unless there's some direct connection to the U.S. banks — and there rarely is — you need to treat these pullbacks as buying opportunities," the "Mad Money" host said.
|
|
"When a company's track record is this good, you need to take advantage of the most modest pullbacks to do some buying, and they seem to keep happening after every quarter," Cramer said.
|
|
Midterm years see a 17 percent correction on average, the largest intrayear pullbacks of the four-year presidential cycle, according to Detrick, though he does not foresee such a sharp pullback this year.
|
|
Ben Carlson, director of institutional asset management at Ritholtz Wealth Management, pointed out in a tweet Wednesday that 5% pullbacks in the S&P 500 have happened in 65 of the past 70 years.
|
|
Given recent strength, investors are also likely to be cautious about being short the U.S. currency before a long weekend, Popplewell said, adding that there is good demand for U.S. dollars definitely on pullbacks.
|
|
There are many different kinds of sell-offs — from garden-variety pullbacks to wholesale breakdowns like the 2008 financial crisis — but the key for investors is knowing why they're occurring, CNBC's Jim Cramer says.
|
|
"The volatility has been very low and pullbacks have been very slight, so when you get a 2 percent pullback form an all-time high, people think there's a financial crisis somewhere, " he said.
|
|
Read MoreStrategist: Fed to pave the way for June hike While gold prices may see some pullbacks as investors cash out their profits, Gilbert said the flows into gold ETFs haven't yet notably slowed.
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Tech companies especially like to sit on cash, Evercore's Lee Horowitz said, to keep "dry powder as a way to weather cyclical downturns" and to take advantage of market pullbacks to pick up assets.
|
|
"Barring another tragic event in the gaming region the impact to travel and operators in the region could likely prove short-lived and pullbacks like these can be long-term add opportunities," Wasiolek said.
|
|
Investment firm Guggenheim Funds looked at market pullbacks of the S&P 500 since 1946, finding that market corrections with declines of between 10% and 20% happen about 2.5 times each year on average.
|
|
The insurer, as it has done with previously announced pullbacks from Obamacare marketplaces in other states, on Wednesday cited an individual health plan market that "remains volatile" as it disclosed its cuts in Kentucky.
|
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Stocks go up and stocks go down (obviously) and we recommend investors add to PEN positions on any pullbacks, especially in light of the "pause" call being made by our outstanding strategist, Tony Dwyer.
|
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For those who evaluate the market across various fundamental, technical and sentiment measures, the main thing stocks had going for them by January was unrelenting momentum and refusal to succumb even to routine pullbacks.
|
|
As for U.S. stocks, since February 2016, there have been two shallow pullbacks in the S&P —around 5 percent before last November's election and about 6 percent around the June 2016 Brexit vote.
|
|
Traders cited worries that recent sell-offs in the bond market, caused by concerns that world central banks are running out of ammunition to bolster economic growth, would mean equities remained vulnerable to further pullbacks.
|
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No, because on each and every one of those 18 pullbacks the market snapped back almost twice as quick as it went down and met new highs," Hennessy said in an interview with "Closing Bell.
|
|
Mike Wilson, strategist at Morgan Stanley points out that all sectors but two have had pullbacks that were deeper than the S&P 500 itself since the market's price-to-earnings ratio peaked on Dec.
|
|
Long before Friday's sell-off, Wien predicted several market pullbacks throughout the year, as one of the surprises on his annual "Ten Surprises for 2020" list, which he puts out at the beginning of January.
|
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If a melt-up is a sharp upward acceleration in stock prices from already-high levels with few pauses or pullbacks along the way and a rush of public enthusiasm, that roughly describes today's market.
|
|
HONG KONG (Reuters) - The U.S. Federal Reserve should consider raising the proportion of short-term Treasury bonds it holds to give itself more options to respond to economic pullbacks, a top policy maker said on Tuesday.
|
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Stephen Parker, head of thematic equity solutions for JPMorgan Private Bank, said that any market setback should be used as an opportunity to buy and given today's economic environment, investors should embrace rather than fear pullbacks.
|
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So long as you won't be needing to cash out your investment money in the near future, these kinds of pullbacks will be made up over the long term as the U.S. market and economy recovers.
|
|
"Lower interest rates and accommodative monetary policy are the reality, and this favours investment demand for gold ... though, the sector remains vulnerable to brief pullbacks, as investors lock-in profits," ANZ analysts said in a note.
|
|
But if you look back at the pullbacks we had in early April and early May both of them didn't really bounce until they hit the 200-day, so I would be a little cautious here.
|
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"Also, if you look at the weekly [relative strength] chart, it's right at a level here that has been followed by significant or fairly decent pullbacks in the group several times in the past," said Maley.
|
|
During this bull run, the S&P has had 210.1 pullbacks of at least 22019 percent, including four of at least 10 percent, according to Keith Lerner, chief market strategist with SunTrust Advisory Services in Atlanta.
|
|
In the 8-year-old bull market, investors have consistently been 'buying the dips,' taking advantage of brief pullbacks in prices, so large-cap stocks have not seen a 10-percent correction in well over a year.
|
|
Fundstrat looked at 10 stock market drawdowns of about 30% since 1920 and found that the time needed to recover half of the losses during those pullbacks, was half the duration of the decline, the firm said.
|
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We have not seen a meaningful pullback in stocks in roughly 18 months (during the last China growth scare), when historically the average time between equity pullbacks of 5 percent or more is two to three months.
|
|
It could turn out to be a very, very good year so we're not all that concerned about any short-term possible pullbacks," the chief investment officer of Commonwealth Financial Networks said in an interview with "Power Lunch.
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"When you add it all up, I think you use these market pullbacks to buy pro-cyclical sectors like industrials because we think a new bull cycle is emerging given the broadening participation the world over," said Wald.
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"You'll most certainly get some pullbacks in this group for as long as the democratic primary continues and Hillary Clinton, the presumptive nominee, feels the need to protect her left flank by bashing high drug prices," Cramer said.
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Maybe the fact that the S&P 33 in March underwent only a couple of fairly benign 23 to 21998 percent pullbacks despite plenty of decent excuses to buckle further is the relevant feature of this market's character.
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"There's talk that people are adding to their Treasury positions, and we are continuing to see foreign buying on any type of pullbacks," said Mary Ann Hurley, vice president in fixed income trading at D.A. Davidson in Seattle.
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"It's healthy and normal for equity markets to experience pullbacks – average annual drawdowns in any given year can easily exceed 10 percent and on average still deliver positive total returns on a full year basis," the strategist said.
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And the charts, as interpreted by Carolyn Boroden, suggest that you might want to get more cautious [in the] short term with Amazon, with Alphabet, with Netflix and with Nvidia, because all four seem ready for temporary pullbacks.
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There are sure to be cyclically and politically induced bumps along the way, but we would view near-term pullbacks as buying opportunities, with the longer-term structural supports for the tech sector making it worth the ride.
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He believes the stock will soon regain its $2,050 all-time high level from September, and with the stock currently trading about 10% below that price, he believes investors should use pullbacks like this one as a buying opportunity.
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Big-cap technology stocks might be the way to go if the former secretary of state wins the White House, trader Dan Nathan said, adding that investors should look at those stocks in the event of pullbacks in general.
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There are all sorts of possible reasons for why the black unemployment rate went up: seasonal shifts (such as pullbacks after the holiday shopping season), problems in specific sectors, changes in demographics and the overall population, and so on.
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The fact that individual investors are jumping in is sometimes viewed as a contrarian indicator, a sign that a top is near, but analysts say that the market rally appears to be strong and should continue even if there are pullbacks.
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A new 52-week high after a long pause is a bullish signal for stocks that leads to a period of strong returns and fewer severe pullbacks, Bank of America told clients on Monday as the S&P hit record levels.
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This doesn't at all mean the bull market is over, but the upside to the old highs and perhaps beyond would likely be a more fitful "brute force" advance rather than the elegant choreography of the "no pullbacks" 2017 rally.
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This certainly gives cause for some optimism that prices have arrested their declining trend, and while a sustained rally may be a tad hopeful, a period of bouncing along the bottom with little rallies and pullbacks is a reasonable expectation.
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Far too many people treat pullbacks as reasons to sell, when in reality, they can be excellent buying opportunities, especially as stocks break out of their old ranges and fail to be contained by what you thought would contain them.
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The framework, invented by Ralph Nelson Elliott, posits that each bull market rally goes through five different "waves" before a pullback occurs, with the first, third, and fifth waves moving upward while pullbacks happen in the second and fourth waves.
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With Jerome Powell just starting out as Federal Reserve chairman and midterm elections coming in November, he contends the stock market is vulnerable to more steep pullbacks on uncertainty — and says the dips would be an ideal time to buy.
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"Investors should consider pullbacks as a time to make shopping lists of desirable opportunities, as well as time to seek 'babies thrown out with the bathwater' during market volatility," Oppenheimer chief investment strategist John Stoltzfus wrote in a note to clients Friday.
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As Stewart also pointed out, this is kind of how the stock market behaves — people just aren't used to it: We're in the ninth year of recovery after the Great Recession, and sharp stock market pullbacks have been relatively infrequent in recent years.
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So, the best advice I can say is to consider buying small and simply add a little bit on pullbacks, and I think we are on the verge of a time when we can at least have a decent bounce off these lows.
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" While he said the viral video effect "could well be at the heart of this or could well be an important factor in this," he worried that the response could be "marginal pullbacks by lots and lots of police officers that is changing some cities.
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That is the read of stock market strategists and other market watchers looking at past pullbacks of at least 10 percent on the S&P 500 and whether the benchmark index is likely to extend its decline to 20 percent, or bear market territory.
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We "continue to view the market cycle as being a normal pause in an ongoing secular bull market similar to what developed in 2016, 2011 and the 'cycle' pullbacks that developed during the secular bull markets in the 50s-60s and 80s-90s," he wrote.
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Such geopolitical shocks have historically led to sharp pullbacks in stocks with the S&P 23 declining 2025% to 2500% on average in the wake of the events, according to Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch.
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While he steered clear of calling it the "Ferguson Effect," he did say the number is potentially on the rise because of the viral video effect and the "marginal pullbacks of officers" based on private conservations he has had with law enforcement leaders across the country.
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"There's going to be plenty of pullbacks along the way, but I think in the next year or two you could see that big run-up that we've all been waiting for, as investors start to feel a little bit more enthusiastic about this rally," he added.
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Hogan said investors might want to look to the energy and financial sectors for value during upcoming marketwide pullbacks, and that they should steer clear of utilities, consumer staples and semiconductors, the latter of which he called the "tip of the sword" in the U.S.-China trade dispute.
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In a note to clients Monday morning, Stovall notes since World War II the market has had 25 pullbacks ranging between 24.3 percent and 9 percent, 21 corrections involving a market drop of between 10 percent to 19.9 percent and 12 bear markets (drops of 20 percent or more).
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"It's important to note that the pullbacks are fairly modest...it did not turn into support for safe havens and that suggests what we're seeing is a corrective measure after a strong rally rather than a reversal of sentiment," said Michael McCarthy, chief market strategist at CMC Markets.
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"We see these kinds of pullbacks, the dips, more as an opportunity, especially in emerging markets and especially in Asia ex-Japan," he told CNBC's "Squawk Box Asia," adding that the Chinese government has learned from similar past events and has become more adept at containing the virus.
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"This drives me nuts because, more often than not, these pullbacks turn out to be buying opportunities once we learn Amazon's buildout will take longer than expected, or the market's big enough for multiple winners, or the damage to the competition simply isn't as bad as we thought," he said.
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Those factors, along with a spate of recent weak economic reports out of China and other emerging markets, have shifted the conversation back toward worries about oversupply, and pushed U.S. futures to lows not seen since April, interrupting an upward move that had consistently found support during the rally's modest pullbacks.
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In a global recession brought on by a geopolitical shock, the biggest risks could lie for and in developing economies, where many companies may be carrying debt in a currency that could drop in response to bad news, or be vulnerable to sharp pullbacks by consumers in the same boat.
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Still, the Fed meeting has plenty of wary eyes on it, in part because the past two significant market pullbacks, in May and then late July, began just after the S&P 500 had rallied to slight record highs into a meeting at which the Fed largely met investor expectations.
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"If you look at all the large declines that we've seen during [in six years], mainly from the peak in 2015, from the peak last September, and even that short correction in January of last year, they were all preceded by pullbacks in the semiconductor group on a relative basis," said Hickey.
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Chinese consumers still healthy Tina Byles Williams, the CEO and chief investment officer of asset management firm FIS Group, said pullbacks in Alibaba (BABA), Baidu (BIDU), Tencent (TCEHY) and Sunny Optical (SNPTF), a maker of camera lenses used by major Chinese smartphone makers Huawei, Xiaomi, Oppo and Vivo, are a bit excessive.
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" Indeed, Gene Munster, senior research analyst at Piper Jaffray, wrote in a note last week that he recommends buying large-cap internet stocks at these levels despite the sell-off in the group, and describes this time as a "rare opportunity to buy pullbacks in companies with clear multiyear revenue earnings trajectories warranting higher valuations.
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Netflix stock has gained close to 40% this year, but has seen pullbacks coinciding with recent big gains from Disney, including the April 11 launch of Disney+ and on April 23 when Bank of America-Merrill Lynch analysts upgraded Disney to their U.S. 1 list of top investments and increased the price target to $168.
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"A pullback to that support level would actually be welcome from a technical perspective and that would increase the risk-reward ratio following that breakout so I do think some of these stocks that have run up following breakouts are prone to pullbacks, more so than the broader market or major indices, but I would see them as opportunities to add exposure," said Stockton.
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This graph shows that, with the line chart tracking flu deaths over time and the black and gray bars below showing when key social distancing measures were in place: In a lot of cities, similar premature pullbacks produced a lot of "double-humped epi curves," as Markel described them: Officials instituted social distancing measures, saw flu cases fall, then pulled back the measures, saw flu cases rise again, and reactivated the measures.
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