A Small-cap Renaissance?

JC Parets
August 9, 2022

Are you seeing Small-caps breaking out to new 4-month highs relative to Large-caps?

This underperformance in Small-caps began in Q1 2021 which, among other things, sparked the beginning of the bear market.

This week would mark the 18-month point, if a bear market is even something we're still in.

This kind of outperformance from Small-caps is not something we've seen over the past 18-months.

And as usual, for me it's less about "what" is happening, and more about "where" it's happening.

Small-caps are getting this outperformance going at exactly the 61.8% retracement of the entire rally from the ETFs inception in the Spring of 2000.

We saw a decade of Small-cap outperformance followed by a decade of underperformance.

What's the next decade look like?

Is this a new trend that's just getting started?

If, in fact, Small-caps do continue their underperformance, what does that say about this 18-month old bear market?

Can we move on now?

New Bull Market?

Small-caps outperforming?

You tell me. Let me know what you think!

We a have a fat list of opportunities right now in the current market that are actionable today.

If you're interested in seeing my favorite trades right now filtered by best risk vs reward, give us a call and add our new app to your account: +1(323)421-7910

Rangefinder is our brand-new trading app that stores every ASC premium trade idea, annotated chart, and trading instructions.

Sign up and then ping me and let me know what you think!

JC

 

Filed Under