Small-Cap Still Leads
Whatchu talkin' about I need a breather?
A look at the SP 600 and SP 500 paired relationship...
Continuing the theme of the past few years, small cap stocks are the true leaders in this market:
The above chart shows the S&P 600 (Small Cap) Index relative to the S&P 500 Index. The higher this plot goes, the more small cap issues are outperforming large cap issues. The choppiness of this paired relationship shows extreme trending at this time – well ahead of this pair's seasonal upturn in April and May.
The market has done well during this period. Short-term, the market still has to get through to mid-April, when seasonality turns positive. The market needs a breather, or it may be out of breath by the time mid-April rolls around. That said, the market's ability to hold things together makes the Armageddon scenario unlikely.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter