I'm maintaining my neutral short-term bias. My data sets are mixed, with some indicators pointing in bullish territory while others skew bearish.
Volatility has contracted to extreme levels. Given volatility's mean-reverting nature, we're likely going to experience an expansion in volatility in the short-term.
I'm being patient and letting the weight of the evidence tip me to a more bullish stance.
We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
To make the cut for our Minor Leaguers list now, a company must have a market cap between $1 and $4B.
Silver is underperforming Gold. The corrections in Platinum and Palladium are burrowing deeper beneath our breakout levels. And the Gold Miners ETF $GDX is printing fresh lows versus the broader market.
Silver is underperforming Gold. The corrections in Platinum and Palladium are burrowing deeper beneath our breakout levels. And the Gold Miners ETF $GDX is printing fresh lows versus the broader market.
In today's episode of the Flow Show, Steve and I navigate some trade ideas that would help add bearish portfolio diversification in case the stock market wants to catch its breath this summer.
We discussed two specifically ugly charts, and we both agreed that Block Inc $SQ offers the best opportunity as an options trade.