Posted by bluezango on 26th of Nov 2014 at 02:33 pm
The newsletter a few days ago mentioned that "Small Caps Tend To
Do Well In Last Month of Year". Can anyone expand on that
please? (Like to play the RUT as my hedge against some
longs, so this is interesting)
bluezango: Historically small caps are beaten down prior to
December (tax selling etc) and then get a boost (called January
Effect). However, the RUT is currently displaying some negative
divergence on the daily chart on recent highs so trail stops
upward.
Beyond slowing domestic growth (GDP again slowed 2nd derivative
YoY - continuing a multi-quarter trend which is bad for the
Russell), I think the illiquidity & YTD volatility of the
Russell have big players focusing on big, liquid plays - Apple,
Baba, etc. Less likely to see small cap January Effect under these
conditions.
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Small Caps Tend To Do Well In Last Month of Year?
Posted by bluezango on 26th of Nov 2014 at 02:33 pm
The newsletter a few days ago mentioned that "Small Caps Tend To Do Well In Last Month of Year". Can anyone expand on that please? (Like to play the RUT as my hedge against some longs, so this is interesting)
thanks
bluezango: Historically small caps are
Posted by steve on 26th of Nov 2014 at 02:41 pm
bluezango: Historically small caps are beaten down prior to December (tax selling etc) and then get a boost (called January Effect). However, the RUT is currently displaying some negative divergence on the daily chart on recent highs so trail stops upward.
Beyond slowing domestic growth (GDP
Posted by a_l_ on 26th of Nov 2014 at 02:48 pm
Beyond slowing domestic growth (GDP again slowed 2nd derivative YoY - continuing a multi-quarter trend which is bad for the Russell), I think the illiquidity & YTD volatility of the Russell have big players focusing on big, liquid plays - Apple, Baba, etc. Less likely to see small cap January Effect under these conditions.