Cathie Wood’s ARKK Fund Looks for a Bottom. Here’s How to Trade It.

In the battleground for growth stocks, the bulls lately haven’t put up much of a fight.  High-growth stocks have been getting crushed. 

A typical drawdown in quality names has been 40% to 50% over the past decade or so. Sometimes more and sometimes less, but that’s not really the point. The current correction has been a different animal.

Whether it’s a revenue-less, loss-generating SPAC or an actual high-quality growth company, the stocks have been getting buried.

Snap  (SNAP) – Get Snap, Inc. Class A Report was down 70% at its recent low. Roku  (ROKU) – Get Roku, Inc. Class A Report is down about 80%. Fastly  (FSLY) – Get Fastly, Inc. Class A Report is down 85%. Twilio  (TWLO) – Get Twilio, Inc. Class A Report, PayPal  (PYPL) – Get PayPal Holdings, Inc. Report and Shopify  (SHOP) – Get Shopify, Inc. Class A Report are down 64% to 66%.