Momentum levels are up, volatility is low, small-cap stocks are trading above their 50-day moving averages, and large caps aren’t far behind.
Large caps are lagging largely due to the possibility of an interest rate hike, but small caps aren’t as susceptible to rate fluctuations.
They’ve weathered the periods of uncertainty in 2021 better than their large-cap counterparts, so this move higher is completely natural.
These types of stocks also tend to break out following extended periods of horizontal, choppy market action — exactly what we’ve been experiencing lately!
That’s why WealthPress Senior Strategist Roger Scott wants to share two small-cap stocks whose momentum levels are through the roof. These two look to be solid momentum plays between now and January, a time that should see stability in the market and increased rotation into smaller stocks.
Just about every financial-related channel WealthPress Senior Strategist Roger Scott watches is focused on the relationship between the TLT, which tracks the 20-year Treasury bond, and tech stocks.
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