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Tesla has now misplaced about half its worth since its December peak and nonetheless trades at over 100 instances earnings. However wherever there’s a falling knife, there’s a day dealer poised to catch it.
JPMorgan has been crunching numbers on retail buying and selling flows ever because the entire 2021 GameStop saga. The newest instalment of its “Retail Radar” weekly report reveals an entire lot of dip shopping for. Alphaville’s emphasis under.
Retail merchants web purchased $12.5B over this previous week, +3.2z above 12M common. They broke the $2B threshold for the previous 4 days in a row. It’s value noting that this degree that’s extra simply reached in a “down” 12 months than in an “up” 12 months: it was not often seen in 2023/24 (4 instances in whole), when S&P produced double-digit returns, however occurred 10 instances in 2022, concentrated in Feb throughout the Russia-Ukraine battle, and has already occurred 16 instances this 12 months.
The extra granular particulars are attention-grabbing. Of the $12.5bn, about $4.2bn went into ETFs (btw, the trade hit $15.5tn of belongings on the finish of February). Broad fairness market ETFs have been the preferred, together with a smattering of bond and gold ETFs.
Nonetheless, a whopping $8.3bn went into particular person shares over the week, and of that Tesla attracted the lion’s share. Right here’s JPMorgan once more, with the financial institution’s emphasis in daring.
Single shares accounted for +$8.3B of the influx. TSLA (+$3.2B, +3.5z) and NVDA (+$1.9B, +1.1z) collectively contributed greater than half, and the remainder of Mag7 contributed one other $1B. Notably, they’ve been shopping for TSLA for 12 consecutive days, including $7.3B in whole. Whereas this isn’t the longest consecutive streak of Retail shopping for in TSLA, it’s the highest magnitude amongst all previous “shopping for streaks” in over a decade.
Right here it’s, charted (apologies for unhealthy high quality picture, zoomable model right here):
So how is that dip-buying going for retail merchants? Effectively ..
Additional studying:
— $1.4bn is rather a lot to fall by the cracks, even for Tesla (FTAV)
