For the first time in more than 225 days, the S&P 500 saw a market pull-back of at least 5%, which was actually the seventh-longest stretch of time since records began. 

A number of headwinds were hanging over the market last month, including the Federal Reserve’s plans to begin tapering its QE program, and potentially even lift interest rates from as early as next year, which sparked a rally in Treasury yields. Meanwhile, anxieties about the US economy and debt ceiling also weighed on the market, as did concerns that China Evergrande Property could set off financial contagion across markets after missing its debt repayment obligations. 

The impact was most-felt across the tech-heavy Nasdaq, which slumped 5.3%, although the S&P 500, down 4.8%, and Dow Jones, down 4.3%, fared only slightly better.

Last month’s trading activity across the SelfWealth community points to few concerns about a market correction, with members eagerly chasing the next ‘hot’ stock.

 

Which US shares were the most held?

Tesla (NASDAQ: TSLA) regained the top position as the favourite US stock in the SelfWealth community, with holdings in TSLA up more than 12% month-on-month. That was more than double the underlying growth in the company’s share price across the month, with the tech company offering exposure to the electric vehicle theme that SelfWealth members have already shown significant interest towards by way of the supply chain that supports this industry. 

Big tech holdings rose across names such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL) and Alibaba (NYSE: BABA), even as sentiment soured and shifted towards a risk-off mentality. At the same time, members cut holdings in Amazon (NASDAQ: AMZN) and the ARK Innovation ETF (NYSE: ARKK), suggesting investors were selective about the names they sought to retain exposure to.

Some SelfWealth members took it upon themselves to seek greater defensiveness within their portfolios, and this was central to the rise in Berkshire Hathaway (NYSE: BRK.B) last month. The stock climbed from 17th to 11th as the most-held stock across the community, with the value of collective holdings increasing by about 25% despite the fact the stock retreated by 4.3% across the month. It may be a case that some members are looking for the Warren Buffett-led company to guide their returns as markets turn volatile.

Airbnb (NYSE: ABNB) made a return to the list of the most-popular stocks, with the peer-to-peer travel accommodation platform also seeing its share price surge by 7.3% last month. With growing expectations the US may be getting on top of its latest COVID wave, and more countries opening up to international travel, expectations are building for the sector. At the same time, management has forecast record revenue in Q3, even in the midst of the pandemic.

 

US Stock Company
1 TSLA Tesla
2 GME GameStop
3 AAPL Apple
4 MSFT Microsoft
5 AMZN Amazon
6 ARKK ARK Innovation ETF
7 AMC AMC Entertainment
8 BABA Alibaba
9 PLTR Palantir
10 GOOGL Alphabet Class A
11 BRK.B Berkshire Hathaway
12 NVDA Nvidia
13 PYPL PayPal
14 NIO Nio
15 ARKG ARK Genomic Revolution ETF
16 QQQ Invesco QQQ Trust Series 1
17 VOO Vanguard 500 Index Fund ETF
18 AMD Advanced Micro Devices
19 ABNB Airbnb
20 CRM Salesforce.com

 

US share trading activity

We also had a new name rise to the top of the most-traded US stocks, with BIT Mining (NYSE: BTCM) chalking up millions of dollars in trades. Bitcoin mining has become a phenomenon over recent years amid the meteoric rise in the price of bitcoin, and with volatility creeping into the market last month, that provided the perfect backdrop for a heightened level of trades in shares of BTCM.

Trading was also elevated for the likes of digital HR software provider Support.com (NASDAQ: SPRT), as well as vertically-integrated bitcoin mining and power generation company Greenidge Generation (NASDAQ: GREE). With the two companies formalising a long-awaited merger in the middle of September, a number of members bought into SPRT ahead of its vote on the merger. This was likely in anticipation of exposure to the first publicly-traded bitcoin mining firm with its own power plant, and expectations of a positive reaction from the market on approval. However, it turned out to be a case of ‘buy the rumour, sell the news’, with the stock sinking thereafter. 

With lithium companies also at the centre of a boom in demand, fuelled by the transition to electric vehicles, it was no surprise to see a US-listed name from this sector make the cut and finish the month as the 6th most-traded stock by value. Lithium Americas (NYSE: LAC), which is also listed on the Toronto Stock Exchange, had a bumper month, up 12.2%. SelfWealth members gained confidence as lithium hydroxide prices hit all-time highs, and data pointed to bullish EV production forecasts from specialty chemicals company Albemarle (NYSE: ALB) and buoyant EV sales.

As touched on earlier, Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) continue to be resounding buys in the eyes of many across the SelfWealth community. Both stocks saw staggering levels of buying support in September, with buy orders representing 89.1% and 96.7% of the value of all shares traded respectively, a level that is normally reserved for ETFs. 

Elsewhere, short-squeeze candidate Vinco Ventures (NASDAQ: BBIG) was a popular name, driven by discussion across Reddit, high-growth digital lending business Upstart (NASDAQ: UPST) attracted interest given its ties to AI and machine learning, while vaccine-maker Novavax (NASDAQ: NVAX) was sold off as news of a delayed pathway to file for FDA Emergency Use Authorisation (EUA) hit home with investors as the outlook for combating COVID across the US improves.

 

Top 20 stocks traded by value
Code  Security Buy-sell Ratio
1 BTCM BIT Mining 48.5%
2 TSLA Tesla 57.7%
3 SPRT Support.com 51.4%
4 AAPL Apple 71.6%
5 GME GameStop 60.5%
6 LAC Lithium Americas 52.8%
7 AMC AMC Entertainment 43.0%
8 GREE Greenidge Generation 50.1%
9 BABA Alibaba 78.6%
10 NVDA Nvidia 39.1%
11 TQQQ ProShares UltraPro QQQ 62.8%
12 PLTR Palantir 62.1%
13 GOOGL Alphabet 89.1%
14 BBIG Vinco Ventures 52.7%
15 MSFT Microsoft 96.7%
16 UPST Upstart 66.9%
17 NVAX Novavax 44.2%
18 ARKK ARK Innovation ETF 52.7%
19 IVV iShares Core S&P 500 ETF 95.6%
20 AMD Advanced Micro Devices 55.1%

 

That’s all for this Trade Trends report, stay tuned for the next edition this time next month!

 

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