Small Caps Lag

November 24, 2019

Weekly Market Outlook

By Keith Schneider

blankUS Equities once again shrugged off the drama unfolding on the Congressional stage by closing down less than -.5%.for the week.

A possible trade deal with China offset the bad Juju of the impeachment hearings. That is good performance after the huge run up to new all-time highs for most for most key US Equity benchmarks.

However, Small Caps or Grandpa Russell continue to lag, highlighting the fact that tariffs have not helped US based companies.

Value stocks closed positive this week, while Growth lagged, another important theme we have been watching unfold the past few months. Get ready for some seismic shifts as we enter a new decade, and this could be one of them.

Red hot semiconductors led the declines, down -2.5% for the week. Semis passed the baton to a different spec sector Biotech, which rose a +3.5%.


This week’s highlights are:

  • Risk Gauges backed off and moved to a neutral reading
  • High Yield debt weakened verses US Bonds, a strong risk off sign
  • Volume patterns are still positive
  • Market Internals remain under pressure
  • Semi’s could be topping out
  • The Retail sector performed poorly, down over -2% for the week as we head into the strongest seasonals
  • Oil moved into an accumulation phase

Check out this week’s video as we cover how to play strong seasonals, a mature bull market, with weak internals amid a backdrop of geo-political stress.

Best Wishes for your trading

Keith Schneider


To learn how we detect shifts in momentum of trends (in markets, sectors and stocks) before everyone else, watch this replay of a live training we held earlier this week.