Small-cap earnings are coming in much weaker than expected when these companies began reporting the fourth quarter – or even when the December quarter began. Small-business optimism remains subdued. Yet, the sell-side expects blockbuster earnings this year. The Russell 2000 … Continued
The Russell 2000 had a phenomenal Friday as rate-cut expectations were brought forward to March. Futures traders now expect five cuts next year – unlikely unless the US economy craters, in which case small-caps will take the brunt of the … Continued
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
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
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 S&P 500 as well as the Nasdaq 100 stalled at 61.8 percent Fibonacci retracement of their February-March decline, before rallying past the golden ratio. The Russell 2000 achieved that feat last week and immediately came under pressure. If it … Continued
Two weeks after breaking out of 1250s, the Russell 2000 (1233) is back below it. IWM shorts never bought into the breakout. They were probably driven more by the sharp deterioration in small-business profit trend. Longs will be on the … Continued
Once again, small-caps are at a crucial juncture. The Russell 2000 slightly retreated three weeks ago after rallying hard post-1600+ breakout. Wednesday, bulls rallied past that high, but barely. A convincing takeout of this level brings the index one step … Continued