After multiple attempts, the Russell 2000 has finally pushed through 2300 – on rate-cut hopes. This sentiment is also evident in the recent rise in small-business optimism, although it is not yet translated into increased job openings. Uncertainty remains – … Continued
Equity bulls bought weakness owing to DeepSeek and tariff jitters. Near term, the major indices act like they want higher prints. Mid- to long-term, the outlook gets muddied thanks to uncertainty owing to the new administration’s trade policy in particular. … Continued
Earnings Season is upon us. Fourth-quarter estimates for S&P 500 companies customarily have been gradually revised lower over the past several months. Heading into this, equities rallied huge last week, although the major US indices are off their December highs. … Continued
With 2Q23 earnings season nearly over, S&P 500 companies are set to earn more than what was expected at the start of the quarter. This, however, is not so as relates to S&P 400 and 600 companies. Mid- and small-caps … Continued
Small-cap bulls once again were forced to defend the lower bound of the 1700-1900 range in place since January last year. The Russell 2000 just does not respond to the optimistic growth forecasts in earnings for this year and particularly … Continued
Job openings – both non-farm and NFIB – are at new highs. But this optimism is not getting translated into other aspects, such as capex plans. Last Friday’s jobs report was a huge letdown. Versus expectations of a million new … Continued
IWM short interest rose to a nine-month high at the end of March. This could potentially help the longs should they succeed in squeezing the shorts. The problem is (1) the Russell 2000 has had a massive rally in the … Continued
One year ago this month, amidst all the gloom and doom, small-caps bottomed. Now, amidst high optimism for GDP and earnings growth, sellers are itching to cash in on their massive gains. After a massive one-year rally, small-caps look ripe … Continued
The Russell 2000 rose to yet another new high on Tuesday, having surged more than 120 percent since last March. A lot of optimism is built in. Earnings are expected to improve massively this year from last year’s loss. Be … Continued