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One of the best parts about working with the Ritholtz crew is that we all share a deep, genuine passion for markets.
The benefit to me of that shared passion is that everyone around me on the research squad is constantly thinking about charts.
People forget, the chart creation process is always two-fold.
First you need to come up with an idea. Then you have to actually build the chart.
But you can’t have the second (building part) without the first (idea creation part).
And the first part can be tricky.
For me, the ideas spring up in random moments. I could be halfway through a cheeseburger at Woodbines in Long Island City, Queens and BOOM a scatter plot pops into mind.
I typed that out as if it were a real story because… well, it is. That actually happened.
I literally let out some sort of yelp at the dinner table, pulled my phone out and jotted down a chart idea.
Then I blogged it for all of you.
See the chart below?
It was thought of at the table in the corner. Back right. I think there was professional cricket on or something. Maybe it was something the announcer said. Whatever happened, my mind went to scatter plot.
A weird process? Yeah kinda. It consumes me and I’m not afraid to admit it.
But I’m not alone. Today, Michael had one of these chart-epiphany moments as well.
He always prefaces the epiphany moment with a message like “I GOT ONE” - Sean and I both know what that means. A dope chart incoming.
Well folks, we “GOT ONE” today.
Michael asked: “show me returns of the bottom x S&P 500 constituents (you decide what x is Chart Kid, I trust you) the 17 trading days leading into the IGV low (2/23) and then what has happened in the 17 trading days since”
I knew exactly what he meant. It’s another perk of working around people who are passionate about making charts. You just know what they want before they even finish saying it.
So I got to work turning his words into a visual.
And boom. A chart was born.
Here’s what you’re looking at:
Each dot represents a different company in the S&P 500
The X axis shows the return 17 trading days heading into the 2/23 software (aka IGV) low
The Y axis shows the return 17 trading days heading out of the 2/23 software (aka IGV) low
I then shaded the 100 stocks with the worst returns heading into the 2/23 low as red.
I also gave them their own trendline.
Here’s the takeaway:
The stocks hit hardest during saasmageddon (or whatever we are calling it) have actually been the strongest performers coming out of the 2/23 low.
Michael and Josh will discuss the chart on WAYT tonight. They’re live as I type this.
Go check it out!