Sector Rotation is the life blood of a bull market.

In the back half of last year, almost everything was working – except for some growth stocks and Tech.

Then came 2023. The best performers have been growth stocks and Tech.

That’s what we mean by “sector rotation”.

Last year they were all bitching about the fact that these Tech stocks and the Nasdaq weren’t working, even through practically everything else was.

This year they’re bitching that these Tech stocks are the only ones working (hint: they’re not the only ones).

Large-cap Tech outperforming does not mean that market breadth is weakening. It just means that Large-cap Tech is outperforming.

This is classic sector rotation – a characteristic regularly found throughout bull markets.

So what comes next? [Read more…]

This is what almost everyone I speak to tells me is going to happen.

They expect a failure up here in the S&P500, an inability to make new highs and instead, just an overwhelming rollover in stocks.

Here’s what that looks like: [Read more…]

Small-cap stocks are back down to where they bottomed out last summer.

Can they do it again?

I believe they can, and that’s the bet that we’re making.

Check out: It’s Now Or Never and also We’re Buying Small-caps

Here’s what the Russell2000 Index ETF looks like: [Read more…]

The weakness in Small-caps has been well documented by now.

Look at the performance since the beginning of 2022.

While the Dow, S&P500 and other major indexes are pushing up near 52-week highs, the Russell2000 is down near 52-week lows. [Read more…]

It’s now or never.

The Russell2000 Small-cap Index is back down near last Summer’s lows.

If there was ever a time for buyers to step up, it’s right now.

And funny enough, relative to the Large-cap S&P500 Index, the Russell2000 is back down to the 2020 lows.

Again, if there was ever a time for buyers to step in, now is the time: [Read more…]