Small-caps are showing some improved action. With so many false dawns in the past, bulls hope this lasts and that the economy is headed for Goldilocks, as too hot or too cold may not suit their bias. Small-caps have spring … Continued
The S&P 500 is unable to decisively build on post-FOMC breakout. Amidst this, plenty of optimism is already built into options, and VIX acts like it wants higher prints. On the 19th, the day after the September 17-18 FOMC meeting, … Continued
It is early, but tech is beginning to lag. This is taking place even as the Fed is getting ready to begin an easing cycle. Historically, stocks tend to rally into this and then head lower. Tech is beginning to … Continued
With mixed macro messages, small-caps, which tend to have high domestic economic exposure, struggle to gain traction. The Russell 2000 remains under its November 2021 high. The sell-side is very optimistic about next year’s earnings, but it is prudent to … Continued
The S&P 500 had not even dropped 10 percent from its record high from last month that there were calls for a 75-basis-point cut in an emergency Fed meeting. Three decades of the so-called Fed put have distorted the markets … Continued
Until 8:30 Friday morning, the consensus firmed believed in Goldilocks. July’s weaker-than-expected jobs report quickly changed this into heightened odds of a recession. How this shakes out in the sessions ahead will be telling. If the bulls are still in … Continued
The Russell 2000’s 250-point surge over six sessions took many by surprise, not the least of which are those who were on the shorting side. This also comes at a time of probable economic deceleration ahead and a question mark … Continued
Small-caps have awoken from their slumber. The Russell 2000 is up 6.6 percent in the last three sessions, with a breakout at 2100. Long a laggard versus large-caps, particularly tech, small-caps’ latest outperformance is raising questions as to if this … Continued
Small-caps continue to act tentative. It is a group of stocks with the most exposure to the domestic economy, and their performance runs counter to the nearly-consensus view that the economy will do just fine next year. Oddly enough, small-cap … 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