Momentum Crash Hits YOLO Traders’ Returns by Most in Four Years

Price Action

โดย Bloomberg·Read original

Summary · why it matters

A rapid selloff in the momentum trade is driving the worst monthly performance since 2022 for a basket of 50 stocks favored by retail investors, which includes Robinhood Markets Inc. and Marvell Technology Inc. A Jefferies basket of Russell 1000 firms with the highest retail participation has lost more than a quarter of its value since June, while momentum ranks as the worst-performing quant factor tracked by Bloomberg in July. Weekly rolling net buying of individual stocks has fallen to the lowest level since the Covid-19 pandemic, and JPMorgan Securities data show retail flows totaled $5.7 billion in the week through Wednesday, below the 12-month weekly average of $6.8 billion. Technology ETFs saw broad-based outflows, with selling pressure in the Direxion Daily Semiconductor Bull 3X Shares and the VanEck Semiconductor ETF running 1.6 standard deviations above the mean. Despite the pullback, retail investors are becoming more selective rather than abandoning stocks, with Microsoft Corp. and Nvidia Corp. still attracting meaningful buying while Apple Inc. and Tesla Inc. face the biggest selling pressure.