What 40 Years of Data Say After a 9% Nasdaq Drop

The Nasdaq is down 9% from its October high, so the question is simple: buying opportunity, or the start of a bigger drawdown? He runs 40 years of Nasdaq 100 history, every 9% drop from a one-month high, 100 episodes across every major crisis. The forward returns look constructive, up about 3.6% over three months, higher 60% of the time. But the real lesson is beneath the averages: the path to any gain can inflict brutal losses first. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 The Nasdaq is down 9% from the high 00:40 Skeptical of the AI investment cycle 01:10 The real question, how much more downside 01:50 Forty years of Nasdaq 100 data 02:40 Defining the correction episodes 03:30 A hundred historical instances 04:20 The forward returns look constructive 05:10 Why the median beats the average 06:00 How often it falls another 5% 06:50 Why the path matters for spreads #tastylive #tradeoftheday #nasdaq #correction #selloff #backtest #drawdown #riskmanagement #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.