HI Bill; Market is odd this morning, and the caution flag is up,
the mid & small caps are actually doing a rally, as the BIG caps
pull down, I've long said a melt down comes after small caps rally,
at the expense of Big caps, of course one day don't make the
set up, but this could be the start of the set up.
--------
I think the Sml Caps are overdue to out perform BIG caps for a while,
but they should do this with new money; not at the expense of
taking old money out of the more liquid stocks to do it.
Taking money out of Big caps to put in small ones creates a liquid problem for the market so that out forward when a correction does
come; by the time the people see it & start trying to get out, the lack of liquid in the market causes it to melt at a faster rate.
----------
This signal today could be a false one due to it being the last day
of the year, but if it continues the next correction could make
the last one look minor.
This is the type of thing that sets the market up, for whatever event later comes along and turns out to be the hair that pulls the trigger,
& what all the short sighted news pundits will lay it on.
Jim |
