Small-Caps Attempt To Dig In

Last week, we looked at where technical analysts are looking for buyers to emerge in the S&P 500. A similar chart emerged in the small-cap Russell 2000, so let’s review. 📝

As we’ve discussed, small and micro-cap stocks have been significant laggards for years. That said, some technical analysts are making the case for this group to lead a short-term stock market bounce.

The thesis essentially looks at the last 15 months of price action, which has been a choppy mess. When prices reach the top of their range around 200, sellers emerge, and prices reverse. And when they get toward the bottom of their range around 163, buyers appear, and prices reverse. 📊

Well, we’re back down to that level now. Since the index has fallen 18% over the last three months, some argue it’s overly extended and could see a bounce. Others say that the fundamental headwinds are too strong and that big tech’s wreck will pull the entire market lower. 🐂⚔️🐻

As usual, we’ll have to wait and see. But that’s what technical analysts in the community are watching in the coming trading sessions. 🤷

More in   Stocks

View All

Trading Competitions: Week 4 Recap

This week’s competition was filled with new names, a change from the last few weeks when several long-term Stocktwits users dominated the leaderboards. But what didn’t change was traders making big gains; let’s see how they did. 👇

Coming in third place was HaltTradeAlert, who made a bullish bet in the pharmaceuticals sector and delivered a 52% weekly gain. Next up was Chaz Russell, who posted a 179% gain after placing bullish bets on Netflix, Carvana, Meta, and other stocks across several sectors. 👀

Read It

How The Markets Performed In 2023

As our article about the ultra-wealthy showed, 2023 was a great year for assets (especially the publicly traded ones). Let’s take a quick peek at how things panned out. 👇

First, let’s start with the tech-heavy Nasdaq 100 index. The chart below shows that the index had one of its best rolling 12-month total returns in decades, rising 55%. The actual total return index also hit new all-time monthly closing highs, reiterating that bulls took back the momentum this year in a big way. 🤩

Read It

Industrials Sneak To New Highs

While everyone is focused on technology stocks, another market sector has been performing quite well. That sector is industrials, which includes everything from aerospace & defense to machinery, ground transportation, and more. 🏭

The cyclical sector is also a widely-watched proxy for how investors feel about the economy. After all, if the economy is going to grow, these types of companies are needed to help produce, ship, and deliver the goods. And right now, investors are apparently bullish on their outlook because sector ETF $XLI broke out to new highs late last year and hasn’t looked back. 📈

Read It

How The Ultra-Wealthy Fared In 2023

Just as 2022 was a challenging year across the board, 2023 was a great one. Let’s check in to see how the ultra-wealthy are set up heading into the new year. 👀

The Bloomberg Billionaires Index indicated that the net worth of the wealthiest 500 people soared by $1.5 trillion this year, recovering all of the $1.4 trillion lost in 2022. That came despite fears of recession, elevated inflation, higher interest rates, and geopolitical turmoil as markets (and the economy) climbed the “wall of worry.”

Read It