Yesterday the S&P 500 was up .28% to 5631 the NASDAQ was up.40% to 18,472 and the small cap 2000 ROARED AHEAD up 1.80% more than triple any of the other averages mentioned. So what does this mean? If you’re a trader the best place to be right now is the small cap arena. Not sure just yet if this is the market broadening its current rally or money being reallocated from large cap stocks. Either way this market is building momentum. Either way the recent move in the Russell 2000 is meaningful. So if you’re a trader it’s always a good idea to be where the action is going remember supply and demand, if there is now a growing demand for small caps it’s probably a good idea to be where the demand is).
Historically an initial small cap rally can last 4-8 weeks. That’s something to think about if you’re a trader. And if you’re a trader again in my opinion if you have big gains in large cap tech it’s a good time to take some money off the table. It’s beginning to look like institutions are. It’s best to do what they do. (they are the guys with the gold (most money) do what they do don’t fight against them, use them to your advantage, the guys with the gold (most money) unfortunately make the rules.) Use them to your advantage.
My number one pick UPST
And as I mentioned in a previous post in 7/12/2024 my number pick UPST Upstart was up 8.4% from a previous close around 25.00 dollars. I own this stock and have purchased it numerous times. It’s a small cap stock. It’s a company losing money, but it benefits significantly when interest rates move lower. It has a large short position, it was once around 400$ a share. I believe the shorts are wrong in this stock and will eventually take a beating. Yesterday it closed close to 30.00 dollars. This stock has the potential with the large short position in it to make a big run, possibly as high as 100$ in the next year. (but that depends on market conditions, good market conditions would benefit a big run). Regardless this is a high risk high reward stock. It’s not for conservative investors. Always consult a financial advisor to see if this stock or any stock fits your risk profile. I am a high risk player. And I will take money off the table if it makes a big run before next year.