r/valueinvesting
On a day like 5/6, if a stock stays flat or even closes green, does that mean something?
User questions if LLY's resilience during a broad market sell-off indicates strong bullish momentum and a buy signal.
- Relative strength against a broad market decline suggests institutional support or defensive positioning.
- Decoupling from tech-heavy indices indicates idiosyncratic fundamental drivers outweighing macro headwinds.
- Single-day price action is statistically insignificant and prone to noise rather than signaling a trend.
- Resilience may reflect temporary capital rotation rather than sustainable long-term value appreciation.
Tech stocks got hit the hardest, but basically 90% of the market was red. However, there were some outliers like LLY. Is this an indication that it is so bullish that the overall market can't bring it down, and is it a strong buy signal?
medtech is becoming "defensive " players and they r beaten down, mostly. BTW, u cannot make a decision based on 2% +/- movement, unless speculating
Not green but Google, a tech stock, resisted quite well and I also wondered
guys, please stop. dont get over the top with a single digit % red.
to your question:
actually what matters is not that whether a stock goes down or stays flat during recessions. Rather it’s ability earn during, like it did before the start of recession. And continue doing it for a long time after the recession. everything else is just noise.
Health care and utilities were rally laggards and catching a bid.
A single day is mostly noise, so I wouldn't read a trend into it. But the more useful question isn't whether a name closed green, it's why. On a day tech gets hit and 90% is red, money usually rotates somewhere defensive, so a name like LLY holding up is often just healthcare catching the rotation (or its own catalyst), not "the market can't push it down."
"Holds green on a red day = strong buy" is a momentum read, and even momentum traders care about sustained relative strength over weeks, not one session. For value specifically, a one-day price tell shouldn't drive the decision at all; the business and the price you're paying should. "It can't go down" is usually how people talk themselves into buying a crowded name at a high price right before it does.
So: mildly interesting as a data point, not a signal, and definitely not a value reason to buy.
Investors were just hiding into “safe” stocks. Kroger, Walmart, McDonald, domino’s all green today. Nothing bullish or anything
I'm hearing that the real crash will be 6/7.
I sold all tech on 6/4
What a lucky
Do you think that sub is ready for it?