Small-cap earnings are coming in better than expected. The economy continues to churn out strong numbers. But small-caps, which by nature have larger domestic exposure, continue to trade within a five-month range. Near term, potential lower volatility can help bulls … Continued
This week begins the 1Q21 earnings season. The S&P 500 rallied to a new high last Friday. Sentiment remains elevated. Unwinding is just a matter of time – whether it begins now or in a couple of weeks. The 1Q21 … 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
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