Hi, all!
I need to repost some of my recent ideas on TradingView due to issues with the platform's moderation. Let's start! The most up-to-date post is coming right away - one that serves as a timely reminder during these interesting times: never forget history.
From November 2008 to February 2025, the Nasdaq 100 (NDX) index has grown by over 2000%! Yes, that’s a 20x increase! This tech giant, made up of the 100 leading technology stocks, has shown impressive strength.
For comparison, the S&P 500 has risen about 820% in the same period. A great performance but Nasdaq 100 leaves it far behind.
Has this been a straight-line rise? Not really. Looking back, it may seem like the perfect investment. But the road was not smooth. Nasdaq 100’s success came with painful drops, investor panic, and moments when it felt like the market would never recover.
From the outside, everything looks great. But would you sit through a 30% drop, while the news is screaming about the "end of the world"?
So, I decided to analyze every correction of 10% or more since the market bottom in 2008.
- How long do corrections and recoveries last?
- How often do they happen?
- What should investors know?
- Can this help you in any way?
DATA ANALYSIS - 18 corrections in Nasdaq 100 (2008–2025), -10% or more.
Retracement Stats:
- Average drop: -15%
- Median drop: -13%
- Biggest drop: -37.72%
- Smallest drop: -10%
Correction Length (17 completed corrections): How many days does a correction last from the peak to the bottom?
- Average: 60 days
- Median: 35 days
- Longest: 325 days
- Shortest: 14 days
Recovery Time: From bottom back to new highs.
- Average: 165 days (~5.5 months)
- Median: 119 days (~4 months)
- Longest: 752 days (over 2 years)
- Shortest: 42 days (~1.5 months)
Correction Frequency
If we take a rough estimate, in 5800 days, there were 18 corrections, which means a correction happens every 322 days (~10.5 months) on average.
Total Time Spent in Corrections vs. Rising Markets
- Corrections lasted 1016 days
- Recoveries lasted 2801 days
- Total time spent in "work mode": 3817 days
- Total "smooth uptrend" days: 1983 days (~5.4 years)
Basically, like a hardworking employee – the market spends more time struggling than rising!
What Can Investors Learn from This?
1. Accept Volatility
Knowing that market swings are normal, investors can keep a long-term perspective and avoid panic-selling during downturns.
2. Nasdaq 100 Has Always Recovered
In the long run, Nasdaq 100 has always bounced back to new highs. Each recovery has been different, but so far, making new all-time highs has never been a problem.
3. Make Better Decisions
Understanding psychological biases helps investors make rational choices and manage risks better.
4. Market Drops = Opportunities, Not Threats
Most big market rallies started when most investors were too scared to buy.
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." – Warren Buffett
Market drops always feel unique and scary but history shows they follow repeating patterns. And those who keep their emotions in check have the best opportunities.
"The time to buy is when there's blood in the streets." – Baron Rothschild
Final Thoughts: Is the current retracement a buying opportunity? No one knows for sure but history suggests - stay calm!
So, that's all. Like & Boost if you find this useful! 🚀
Have great day,
Vaido
💬 Before you leave... What’s your take on the current Nasdaq 100 correction? Drop your thoughts in the comments 👇
I need to repost some of my recent ideas on TradingView due to issues with the platform's moderation. Let's start! The most up-to-date post is coming right away - one that serves as a timely reminder during these interesting times: never forget history.
From November 2008 to February 2025, the Nasdaq 100 (NDX) index has grown by over 2000%! Yes, that’s a 20x increase! This tech giant, made up of the 100 leading technology stocks, has shown impressive strength.
For comparison, the S&P 500 has risen about 820% in the same period. A great performance but Nasdaq 100 leaves it far behind.
Has this been a straight-line rise? Not really. Looking back, it may seem like the perfect investment. But the road was not smooth. Nasdaq 100’s success came with painful drops, investor panic, and moments when it felt like the market would never recover.
From the outside, everything looks great. But would you sit through a 30% drop, while the news is screaming about the "end of the world"?
So, I decided to analyze every correction of 10% or more since the market bottom in 2008.
- How long do corrections and recoveries last?
- How often do they happen?
- What should investors know?
- Can this help you in any way?
DATA ANALYSIS - 18 corrections in Nasdaq 100 (2008–2025), -10% or more.
Retracement Stats:
- Average drop: -15%
- Median drop: -13%
- Biggest drop: -37.72%
- Smallest drop: -10%
Correction Length (17 completed corrections): How many days does a correction last from the peak to the bottom?
- Average: 60 days
- Median: 35 days
- Longest: 325 days
- Shortest: 14 days
Recovery Time: From bottom back to new highs.
- Average: 165 days (~5.5 months)
- Median: 119 days (~4 months)
- Longest: 752 days (over 2 years)
- Shortest: 42 days (~1.5 months)
Correction Frequency
If we take a rough estimate, in 5800 days, there were 18 corrections, which means a correction happens every 322 days (~10.5 months) on average.
Total Time Spent in Corrections vs. Rising Markets
- Corrections lasted 1016 days
- Recoveries lasted 2801 days
- Total time spent in "work mode": 3817 days
- Total "smooth uptrend" days: 1983 days (~5.4 years)
Basically, like a hardworking employee – the market spends more time struggling than rising!
What Can Investors Learn from This?
1. Accept Volatility
Knowing that market swings are normal, investors can keep a long-term perspective and avoid panic-selling during downturns.
2. Nasdaq 100 Has Always Recovered
In the long run, Nasdaq 100 has always bounced back to new highs. Each recovery has been different, but so far, making new all-time highs has never been a problem.
3. Make Better Decisions
Understanding psychological biases helps investors make rational choices and manage risks better.
4. Market Drops = Opportunities, Not Threats
Most big market rallies started when most investors were too scared to buy.
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful." – Warren Buffett
Market drops always feel unique and scary but history shows they follow repeating patterns. And those who keep their emotions in check have the best opportunities.
"The time to buy is when there's blood in the streets." – Baron Rothschild
Final Thoughts: Is the current retracement a buying opportunity? No one knows for sure but history suggests - stay calm!
So, that's all. Like & Boost if you find this useful! 🚀
Have great day,
Vaido
💬 Before you leave... What’s your take on the current Nasdaq 100 correction? Drop your thoughts in the comments 👇
🔍I do the technicals - so You don’t have to.
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🔍I do the technicals - so You don’t have to.
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.