Two months into the year, January and February have traded similarly – early strength followed by weakness in the dying sessions. Equity bulls’ inability to hold on to gains comes amidst a spike in long rates. Short rates are behaving, … Continued
The Russell 2000 continues to diverge with small-business profit trend. Having rallied the index 138 percent from the low of last March, bulls are salivating over this year’s consensus profit estimates. In the meantime, on the back foot for nearly … 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
The Russell 2000 has a parabolic look to it. Post-presidential election and vaccine news, investors are piling into the index. On Tuesday, the index had opened up a 31.1-percent gap with its 200-day – the most ever. Amidst this, Wednesday … Continued
There is an air of invincibility among equity bulls. A contrarian-minded investor may find this uncomfortably lop-sided, but nothing says it cannot continue in a seasonally favorable period. The recent jump in investor sentiment is yet to translate into consumer … Continued
The Russell 2000 rallied huge the last seven sessions, as post-Pfizer news in particular investors have rerated value versus growth. With this, next year’s earnings estimates are front and center. Small-cap stocks have delivered big gains for investors November-to-date. With … Continued
September was a down month, but it turns out the selloff was used as an opportunity to buy. Use of leverage grew last month. This was then followed this month by improved price action in small-caps, which investors tend to … Continued
The Russell 2000 broke out last week – a big victory for small-cap bulls. They will have scored a bigger one should they decisively defend breakout retest, which looks imminent. Last week, the Russell 2000 staged a major breakout, rallying … Continued
Last week, the S&P 500 as well as the Nasdaq 100 started out strong but finished poorly. The Russell 2000, on the other hand, stayed strong, closing near the week’s high. Before one interprets this as markets’ way of telling … Continued
The Russell 2000 Wednesday broke out of 1450s, although bulls were forced to retest the breakout in the very next session. Wednesday’s low-volume breakout comes against the background of a collapse in small-cap earnings this year and elevated optimism next … Continued