Retail Investors Dump Chip Stocks at Record Pace, Selling 20x Average
Retail investors sold semiconductor and memory stocks at 20 times the two-year average weekly flow in the week ended July 30, marking the third sale in four weeks after a prolonged buying streak.
Retail outflows from semiconductor and memory stocks reached a historic extreme last week. The pace of selling was about 20 times the two-year average weekly flow, according to data from The Kobeissi Letter. Over the past two years, weekly sales had never exceeded five times that average, even during the March pullback when they briefly hit three times.
The selling marks the third weekly net sale in the last four weeks, snapping a run of 10 consecutive weeks of purchases. That buying streak peaked in June, when retail inflows surged to 23 times the two-year average.
The sharp swing underscores how volatile retail sentiment has become. The rapid shift from extreme buying to record selling highlights an unusually reactive investor base in the current market environment.
Source: The Kobeissi Letter