The small stocks have lagged the big cap stocks for some time.
But recent action in shares of the Rusell 2000 ETF (NYSE: IWM)
suggest that some catching up has been under way.
Chart Courtesy of StockCharts.com
Bull markets thrive when most stocks, small, mid size, and large
advance together. That's why we've been worrying about the lack
of rallying in the small stocks for the past few weeks.
But as the dollar has been bottoming, the small stocks have also been improving.
That makes sense, since small company sales tend to be more domestic, and a strong
dollar tends to favor the domestic economy.
IWM topped out in late September, but has worked its way back to where it's only
2 or so percent off of that high. A couple of good Santa Claus rally days and
IWM will have confirmed the fairly good action in the large stocks of late.
It's a soft confirmation, which means that it may or may not be hugely meaningful
in the longer term. But, in the short term it's somewhat comforting.
We still remain cautious, though. This is an old rally now, and it has come a
long way. It's way overdue for a significant correction.
Make money if any market rises or falls, with a copy of "Market Timing For Dummies."
“Futures And Options For Dummies,” Dr. Duarte’s
latest book is now available. The markets are responding to news
and geopolitical developments like never before. In this environment,
individual investors need to expand their investment horizons. "Futures And Options For Dummies " (John Wiley & Sons)
has an excellent section on oil futures as well as the currency markets,
while covering and expanding on the successful strategies in Doctor
Duarte's other books. Order your copy today.
Doctor Joe Duarte's Market I.Q., offers subscribers a unique blend of intelligence, market commentary and trading strategy. Duarte's daily articles, and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Doctor Duarte is a writer, and an emerging futurist, with a diverse background, and a growing audience. His combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.
He is the author of four books: "Futures And Options For Dummies," "Successful Energy Sector Investing," "Successful Biotech Investing" and co-author of "After-Hours Trading Made Easy."
In early 2001 Dr. Duarte in "Successful Energy Sector Investing," correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States.
In 2003, also Dr. Duarte was among the first to widely publicize the long-term friendship between French President Jacques Chirac and Saddam Hussein.
He has also appeared as a weekly guest on Market Mavens Radio, has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.
One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990.
His articles and commentary have been featured on CBS Marketwatch, Barron's, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines.
In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.
Joe-Duarte.com is independently operated and solely funded by subscriber fees. This web site and the content provided is meant for educational purposes only and is not a solicitation to buy or sell any securities or investments. All sources of information are believed to be accurate, or as otherwise stated. Dr. Duarte and the publishers, partners, and staff of Joe-Duarte.com have no financial interest in any of the sources used. For independent investment advice consult your financial advisor. The analysis and conclusions reached on Joe-Duarte.com are the sole property of Dr. Joe Duarte.
| 
