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Bear Update


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#1 RagingSpartan

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Posted 10 December 2018 - 03:19 PM

Notice the weakness is small caps. Telling.

#2 qqqqtrdr

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Posted 10 December 2018 - 04:07 PM

Noticed that...  Small caps should be leading a market upswing and they are not.    It does not bode well for a market bottom at the moment...



#3 slupert

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Posted 10 December 2018 - 06:29 PM

The most interest rate sensitive stocks, waiting for the Fed., then we'll see. (JMHO)



#4 fib_1618

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Posted 10 December 2018 - 06:41 PM

Noticed that...  Small caps should be leading a market upswing and they are not.    It does not bode well for a market bottom at the moment...

 

Secondary issues that trade on the NASDAQ, Small Caps and MID Caps (in that order) are the first areas of "less deserving" growth products to suffer when the cost of money (liquidity) becomes more expensive (higher interest rates) and investment capital recedes in favor of those issues that have value (fundamentally speaking, R&D suffers from a lack of cheap capital where earnings and revenue later suffer as a result). Alternately, when liquidity levels begin to rise, these same areas are then supported (and lead the market higher) when all other areas of investment are deemed to be fairly valued.

 

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#5 gm_general

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Posted 10 December 2018 - 06:43 PM

Small caps were relatively strong when things were down the most today. I usually observe that the small cap traders are slower to react, like a tree sloth, so they did not catch up with the momos in the other indices when they reversed (as usual).