No, It's NOT just Large-cap Tech

JC Parets
July 10, 2024

Have you heard that this bull market is only being driven by Large-cap Tech?

Well, what if Small-cap Tech broke out of this multi-year base to new all-time highs?

What then?

Would it still be just Large-cap Tech?

Here's what the index looks like and, by definition, it excludes any of the so called "Mag7" and any other Mega-cap stocks that are perhaps helping to drive other indexes.

 

The, "It's only Large-cap Tech" crowd is going to look pretty stupid if this chart up here resolves higher.

And why wouldn't it?

The underlying structural trend is still up.

You can't deny that.

And so the much higher probability outcome is that this consolidation resolves in the direction of that primary trend.

Unless there is any evidence to the contrary, and there is not, we want to err in the direction of the trend.

Besides, this chart above is anything BUT parabolic.

There is nothing bubblicious about Small-cap Tech going sideways for 3 years, after going up 6x over the prior decade, and 3x so quickly off the COVID lows.

This is perfectly normal.

I like the relative strength out of this group and fully expect a historic breakout to occur very soon.

There are small-cap Tech stocks that are already working. We're in those already and adding additional names to our portfolios as they break out.

Premium Members make sure to review the full list of trades here.

And if you're not already a Premium Member, you can join us RISK FREE here and check them out for yourself.

Let me know what you think!

JC

Seek Your Treasure

Silver is making new decade highs, and gold is making new all-time highs.

Precious metals are moving.

And we know that once these things get started they tend to last for years -- not weeks or months but years. Even decades.

Price is the only thing that pays. But time is important too.

That's especially true when we're talking about commodities supercycles.

As always, if you have any questions about recent price action and what's happening with markets right now, you can always drop us an email.

 

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