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  5. SQ: Hi Team, This is more of a general question/ observation of todays price action. [Block Inc. Class A]
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Q: Hi Team,
This is more of a general question/ observation of todays price action. On a very negative day yet again, across all major index's where it seemed almost everything is down, some of my worst performers which I thought would be down even more yet were actually positive on the day. In specific (RBLX,SHOP,SQ,TOI (almost NVDA...was positive for a while). Anyways, should we read much into this? Is this a sign that some of these beat down names may actually be flirting with bottom? Or is is just wild trading and a one off perhaps? Your thoughts would be appreciated. Thanks

Shane.

Asked by Shane on September 26, 2022
5i Research Answer:

We would very much caution against looking at single-day moves as a trend. But.........growth stocks, and particularly small cap growth stocks, started dropping sooner than the rest of the market, and have been crushed. In a market pivot, some growth stocks will double, or triple. In most market cycles, small caps lead the market out and do begin rising first. But we would not yet call a trend here. 

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