Weekly Drawdown Report: August 15, 2026

AMAT Is Down 30% in 35 Days. What Our Data Shows

Key Takeaways from the August 15, 2026 Drawdown Report

As of August 15, 2026, Applied Materials (AMAT) is down 30% from its all-time high and has been falling for approximately 40 days. The Drawdown Severity Score™ for the stock stands at 5.0, placing it exactly on the border of the high-risk red zone. Across our database of 860 tracked assets, our data shows that 347 assets, or 40.3%, currently reside in this red zone.

Our weekly analysis tracks how long individual assets remain in corrections and how quickly they recover. This systematic tracking helps risk managers identify when selling pressure is accelerating or stabilizing. The table below outlines key assets currently experiencing significant drawdowns.

Market-Wide Drawdown Distribution Summary

We track a total of 860 assets on the DrawdownAlerts platform. As of August 15, 2026, the average Drawdown Severity Score™ across all tracked assets stands at 5.1. This indicates a market environment where the typical stock is experiencing a significant correction from its peak.

Our platform categorizes assets into three distinct risk zones based on their technical health. The red zone represents assets with a severity score of 5.0 or higher. The yellow zone represents assets with a score between 2.0 and 5.0, while the green zone contains assets with a score below 2.0.

Our data shows that the red zone remains the largest category, encompassing 347 assets. This represents 40.3% of our entire tracked universe. This high concentration in the red zone suggests that a large portion of the market is experiencing deep, persistent pullbacks.

Meanwhile, the yellow zone contains 235 assets, or 27.3% of the total. These assets are in moderate drawdowns but have not yet crossed the high-risk threshold. The green zone accounts for 278 assets, or 32.3%, representing the healthier segment of the market.

Weekly Zone Transitions and Momentum Shifts

Several notable assets crossed critical zone boundaries during the week ending August 15, 2026. These transitions signal shifts in momentum and changes in the underlying trend of each security. We monitor these movements to identify where selling pressure is accelerating or beginning to abate.

For example, Kroger (KR) crossed from the yellow zone into the red zone as its Drawdown Severity Score™ rose to 5.1. This shift indicates that the grocery retailer is experiencing a deeper correction than its historical average.

Conversely, several assets showed signs of stabilization, moving from the yellow zone to the green zone. This group includes GE Vernova (GEV) with a severity score of 1.9, Newmont Corporation (NEM) at 1.8, Exelon Corporation (EXC) at 1.9, and Seagate Technology (STX) at 1.9. These movements suggest that selling pressure in these specific names has exhausted itself for now.

We also observed Honda Motor Co. (HMC) transitioning to the green zone with a Drawdown Severity Score™ of 2.0. This transition reflects a stabilizing price pattern after a period of moderate correction.

Meanwhile, SanDisk (SNDK) and Applied Optoelectronics (AAOI) both graduated from the red zone to the yellow zone, posting severity scores of 4.8 and 5.0 respectively. This transition is a positive sign, indicating that the worst of their downward momentum may be pausing.

On the downside, Brookfield Corporation (BN) and Moelis & Company (MC) fell from the green zone into the yellow zone, registering scores of 2.3 and 2.1. These shifts indicate that fresh selling pressure has begun to impact these previously resilient assets.

Analyzing the Highest Severity Drawdowns

The most extreme drawdowns in our database represent assets that have experienced prolonged and severe capital destruction. These situations often involve multi-year declines where the path to recovery remains highly uncertain.

At the top of this list is Upstart Holdings (UP), which carries a Drawdown Severity Score™ of 22.1. The stock has been in a continuous drawdown for 1847 days as of August 15, 2026, and remains down -99.8% from its peak. This represents one of the most severe long-term corrections in our database.

Similarly, EnCore Energy (EU) has a severity score of 20.7, with a drawdown lasting 5657 days and a peak-to-trough decline of -86.8%. This multi-decade correction highlights the extreme volatility inherent in certain commodity-focused assets.

Nano Dimension (NNDM) shows a severity score of 19.5, down -98.2% over a span of 3787 days. This prolonged decline reflects the challenges faced by early-stage technology companies attempting to scale.

American International Group (AIG) continues its decades-long struggle, down -93.8% over 9367 days with a severity score of 18.9. This drawdown serves as a historic reminder of how long some financial sector giants can take to recover from systemic crises.

Finally, EPAM Systems (EPAM) rounds out the top five with a score of 18.4, down -86.0% over 1729 days. The software services provider has struggled to regain its previous highs after a prolonged period of deceleration.

Stocks Hovering on the Red Zone Border

A critical area of focus for risk managers is the boundary between the yellow and red zones. This transition point occurs at a Drawdown Severity Score™ of 5.0. Assets hovering just below or exactly on this line are experiencing escalating technical damage.

Six assets sit exactly at the 5.0 severity score threshold. Alamo Group (ALG) is down -28.7% over 358 days, while AAOI is down -32.6% over 83 days. WFRD has been in its drawdown for 749 days, currently sitting down -27.8% from its peak.

We also see Hona (HONA) down -38.4% over 58 days, alongside AMAT and Astera Labs (ALAB), both of which have been falling for exactly 35 days. AMAT is down -29.9%, while ALAB has declined -33.4%.

Just below this threshold are Dollar Tree (DLTR) and Sensata Technologies (ST), both carrying a Drawdown Severity Score™ of 4.9. DLTR has been in a drawdown for 1567 days, down -25.7%. ST has been declining for 1680 days, down -24.8%.

These border cases represent the most vulnerable assets in the current market environment. A small increase in selling pressure could push all of these names firmly into the high-risk red zone.

Large-Cap and Sector-Specific Drawdown Analysis

Large-capitalization stocks often dictate the direction of major market averages. When these heavily weighted components begin to experience deep drawdowns, they pull index-level performance down with them.

In our current data, several prominent large-cap names are showing distinct drawdown profiles. For instance, AMAT represents a vital cog in the global semiconductor supply chain. Its rapid 35-day descent of -29.9% highlights how quickly sentiment can shift in high-growth technology sectors.

We also monitor major consumer-facing and industrial giants like KR and HMC. KR entered the red zone this week with a Drawdown Severity Score™ of 5.1, reflecting a deeper correction than its historical average. Conversely, HMC managed to stabilize, exiting the yellow zone to enter the green zone with a Drawdown Severity Score™ of 2.0.

This contrast between sectors is a common feature of corrective market phases. While technology and retail names face intensifying pressure, select industrial and utility stocks are finding support.

Technical Dynamics of Long-Term Drawdowns

Understanding the duration of a drawdown is just as important as measuring its depth. A stock that drops 30% in a month behaves very differently from one that grinds lower over several years.

Short-term, sharp declines like those seen in AMAT and ALAB are often driven by sudden shifts in quarterly guidance or macroeconomic shocks. These rapid moves trigger high volume and elevated volatility but can sometimes resolve quickly if fundamentals stabilize.

In contrast, long-term drawdowns like those of AIG or EU represent structural changes in business models or industry dynamics. These multi-decade declines create a massive overhang of trapped capital, making any potential recovery a slow and arduous process.

Our platform tracks these duration metrics to help users distinguish between temporary corrections and structural trend reversals. By analyzing the relationship between duration and depth, we assign a more accurate Drawdown Severity Score™ to each asset.

What to Watch Next Week

As we look ahead, we will closely monitor the cluster of stocks sitting on the 5.0 severity score boundary. If selling pressure persists, we expect multiple names to transition firmly into the high-risk red zone. In particular, DLTR and ST are only a fraction of a point away from crossing this threshold.

We will also watch whether the stabilization observed in green-zone graduates like GEV and NEM can be sustained. If these assets begin to carve out long-term bottoms, it could signal a broader reduction in market-wide volatility.

Finally, we will continue tracking the average severity score across all 860 assets. Any shift in this aggregate metric will provide early clues about the next major directional move in the broader market.