Retail investors made SK Hynix (SKHY) one of their biggest buys on Friday, according to the latest data from VandaTrack. By Monday, the stock had fallen as much as 9% as South Korea’s KOSPI (^KS11) plunged nearly 9%.
This kind of whiplash has become familiar. Retail traders are now cashing out of Apple (AAPL), Tesla (TSLA), Nvidia (NVDA) and other chip stocks while chasing newer opportunities. The broader market, however, is not following them lower.
VandaTrack data shows SanDisk (SNDK), Apple, Tesla and Nvidia were the top sources of retail selling last week. Western Digital (WDC), Meta (META) and American Airlines (AAL) also appeared on the list.
The flow pattern appears “more consistent with rotation than outright de‑risking,” Vanda noted on Monday. Retail trading activity remains near record levels, with investors selling almost as much as they are buying.
The “Magnificent Seven” is no longer a single retail position. Over Vanda’s 10‑day window, Microsoft and Nvidia attracted net buying, while Apple and Tesla became sources of cash.
“Retail aren’t buying the Mag 7 anymore,” Vanda wrote. “They’re picking winners.”
Nevertheless, overall participation in the S&P 500 (^GSPC) continues to expand as the retail crowd reallocates.
The index’s advance‑decline line—a running total that adds the number of advancing stocks and subtracts the number declining each day—reached a record high on Friday and rose further on Monday.
This marks a sharp reversal from the breadth divergence observed earlier this spring, when the S&P 500 climbed without confirmation from the average stock. The divergence vanished last week, even as semiconductor shares continued to lag.
The chip trade remains under pressure, but the PHLX Semiconductor Index (^SOX) has held the key 12,000 level tested during last week’s sell‑off. Since the June 25 pivot, the Magnificent Seven tech complex is up about 10 % while the SOX is down roughly 10 %—keeping the market’s recent leadership pattern intact and helping maintain balance at the index level.
That makes earnings season the next test for market direction.
Analysts have raised, rather than lowered, their forecasts ahead of the second‑quarter reports, leaving companies with a higher bar to clear.
In a Monday earnings preview, JPMorgan argued that resilient profits could continue supporting the broader market, writing that ‘rotation and broadening in leadership is underway’ and ‘will likely have legs.’
The firm added that volatility should not become a prolonged sell‑off, especially if the earnings backdrop remains resilient.
