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Smallcaps

Small caps testing a critical support levelSince 2005, the IWM/SPY ratio has held this key support level 6 times. This support failed only once, in the midst of the Covid-19 pandemic. Now we find out whether the pandemic was the exception that proves the rule, or whether the pandemic structurally changed something about the relationship between small caps and large caps. Small cap valuations look better than large caps Check out page two of the latest Yardeni report titled "Selected P/E Ratios." They've got forward P/E charts for large caps, mid caps, and small caps, showing that forward P/E for large caps is still extended well above its historical range, whereas forward P/E for small caps has corrected sharply down back into its normal range of the last 20 years. In fact, we're well below the price multiple that small caps traded at throughout 2017. www.yardeni.com Large caps just touched a strong resistance level The Nasdaq index, heavily weighted toward large-cap tech stocks like Apple and Facebook, just touched 15,000 and seemingly got rejected from that level. Large cap tech has benefited from soaring bond prices, but bonds seem to be meeting some resistance after this month's large inflation surprises. The Fed is doing its best to support bond prices with a "jawboning" campaign, but they've got a tough row to hoe after those inflation reports. Large cap tech also faces a bipartisan push in Congress for antitrust legislation. Facebook, Apple, Amazon, Google, and Microsoft are among the names that may be affected if such legislation goes through. Of course, Tesla is also getting some bad press from the Solar City trial. So it's possible we will see the beginning of a real Nasdaq/S&P 500 correction here. How I'm playing it When I say I think small caps will hold this support, I don't necessarily mean that small caps will make gains. Only that they will make relative gains. That could happen by large caps and small caps selling off together, but small caps selling off more slowly. Or it could happen by small caps trading sideways as large caps sell off. In general, small caps have made their largest gains when large caps are going up, not when large caps are going down. So one way to play this support level is with a two-tailed bet: long small caps, short large caps. Personally I am long a few select small cap names. I like Allison Transmission because of soaring car prices, and I like the KRE regional banking ETF because bonds look like they may have hit a ceiling, and because small lending banks tend to trade inversely with bonds. To hedge my rate bet, I'm also long on small cap gold miners, which should benefit if bonds continue to go up. (I'm also long on homebuilders KB Home and MDC Holdings, although the homebuilder sector is struggling a bit due to backlogs, labor shortages, materials costs, buyer reluctance, and rising rates on 5/1 ARMs. I love the valuations on these two stocks, but I won't be surprised if that trade continues to go against me here.) For the large cap short, I'm trying to be a little careful, because the big tech companies' earnings are coming up. I think I may wait to see what the results are before I take that leg of the bet. It would be easy to get wiped out by a big tech earnings beat. For now I've just grabbed some UVXY shares. As always, this is just an idea and not investing advice. Good luck!
AMEX:IWMLong
by ChristopherCarrollSmith
26
Between Two Fibs - AEMDAEMD seems to like this range between the 786 and 618 fib lines. The 618 has long-been a point of resistance on the chart. Meanwhile, the last few days have seen it test the 786 level but hold both above it AND its 50DMA. No news today but focus on biotechs thanks to CYTK earlier could be a sympathy trigger at play. Also with the Delta varient becoming "a thing," covid stocks in numerous stages of development are becoming more of a focus right now. We'll have to see if 786 fib+ 50DMA post a strong support level and if 618 will remain resistance if or when AEMD takes another swing at it.
NASDAQ:AEMD
by PennyStocks101
Not Much Fib With NRXP But Levels, Yes!Fib Retracement on NRXP doesn't show much by way of "important levels" until you get to the 786 if you use that ATH for the top of your fib set-up. BUT if you look back on the chart, there's a pretty clear level right AT the area NRXP stock is trading at after this news. Around $12.70 was a previous area where the stock tested but didn't break below. Now, since breaking below, this seems to be a level that it can't break above. However, after the news came out, NRXP has treaded water between 11.50 & $12 in a consolidation trend during the 7/19 session. Volume will be something to keep an eye on moving forward in deciding which way it will break. "Shares of NRXP were also going against the grain of the broader biotech trend at the start of the week. NRX Pharmaceuticals (NRXP Stock Report) announced that it will present data at the Disease Control and Prevention Summit this week. Wednesday (7/21) the company provides evidence that its YESAMI treatment might help prevent “cytokine storm” in patients with COVID-19. According to the company, 'In the recently-completed phase 2b/3 trial, patients treated with placebo experienced a statistically significant elevation in interleukin 6 (IL-6) cytokine levels, whereas those treated with ZYESAMI™ had a minimal increase in IL-6. Change in cytokine level was a prespecified endpoint of the study.'” Quote Source: Small-Cap Stocks To Watch After CYTK Sheds Spotlight On Biotech
NASDAQ:NRXP
by PennyStocks101
$NLC.V Potential breakout underway after Positive NR on Li MineNEO Lithium has been battling the last couple months. Great opp to buy the dip in mid may as I shared on Twitter/Substack. Today they released information updating the amount of High/Medium grade Li available at their Brine Mine location in the Lithium Triangle. NLC can now claim to hold one of the world's largest Li resources. They also have some of the highest test/quality Li. Arrow indicates how the mean price acted as resistance just last week. So I see that as an area of Significance over the next couple days/week for buyers to control price at this range. Volume will be key here as well. If NLC fails to crack, look to see if it can hold the upwards new trendline and/or 9 day ma. VWAP anchored from the high also shows that buyers are in control as we are trading above it. Look for continued curving of the VWAP to the upside. Catalysts yet to come for NLC later this Summer are the publication of the DFS and a potential offtake agreement with CATL, or financing from another partner downstream. I have a long position in NLC. Please do your own DD and follow your trading rules. Cheers, Luke
NLong
by LeBelleChart
Quisitive Technologies, $QUIS.V Bottom In? Utilizing Linear Regression at Standard Deviations at 3,2,1,-1,-2,-3 You should see these data lines captures the trading range of Quis. The Time of the plot was adjusted to 175 to best capture what I think is the relevant data lines capturing the tops and *perhaps* now the bottom. I have personally added here to a long position. Last week and today. The Link below is to my notes on the most recent earnings call. It can provide more colour as to how we got to where we are today. There is further work on my substack to add even more of a background. Please do your own DD and follow your trading rules before entering. All the best, Luke
TSXV:QUISLong
by LeBelleChart
MSLV -- Bonanza gold/silver grades; cheapMSLV presents a very attractive opportunity in the mining friendly district and with gold/silver hitting fresh highs. Fully funded for this year. Strong management which is marketing savvy. Churning through IPO paper but could explode at any moment, IMO. ... Mantaro Silver Corp. Introduces High-Grade Sampling Results from Recent Program at Santas Gloria Silver Property VANCOUVER, BC, June 2, 2021 /CNW/ - MANTARO SILVER CORP. (TSXV: MSLV) (the "Company") is pleased to provide an update on its high-grade silver Santas Gloria Silver Property, located 55 km east of Lima, Peru. The Santas Gloria Silver Property, which is 100% owned, is comprised of three mineral concessions totaling 1,100 hectares. Highlights of Santas Gloria Silver Property: - High-grade Underground Channel Samples of over 10,000 g/t Ag at the Tembladera Vein and over 4,100 g/t Ag at the San Jorge Vein in Mantaro's recent exploration program (see Figure 1 for all silver results of the program). - High-grade gold of 56 g/t Au at the Kelly Vein in Mantaro's recent exploration program (see Figure 2 for all gold results of the program). - Approximately 16 major veins and vein splays with a cumulative strike length of over 12 km. - Planned 7,500 metre drill program for the Tembladera Vein System, San Jorge Vein System, Kelly, Maribel and Paquita Veins. There are over 12 kilometers of intermediate sulphidation veins and vein splays arranged into a number of key target zones: the Tembladera Vein System, San Jorge Vein System, Kelly Vein, Maribel Vein, Paquita Vein and Rosario Vein. The system has never been drilled tested and exploitation of silver was limited to two areas of the San Jorge and Tembladera veins.
MLong
by wealth_bakery
IWM Long, why not?Im surprise that Russell has not gone down or at least give into a healthy pullback to 190. There are so many stocks in this ETF that are trading relatively high to pre-covid prices. This ETF is juiced up with fed money. Its unbelievable! Sooner or later its gonna want more? More stimulus money, WTH? Why not? Three weeks ago the uptrend channel was broken and this week its trying to come back to it. With the US economy coming out of the pandemic, it makes sense for IWM to come back to the uptrend channel? MACD just crossed so maybe its gonna go up. Does Russell range bound until the earnings come out in July or it can't wait any longer. I think its going up. Fed wins.
AMEX:IWMLong
by CTRLZEEE
SMALLCAP - SPACE/5G - FUNDAMENTAL/TECHNICAL - GSATFA: - Very bullish on space/5G sector, believe it is one of the next big macro trends, also long on GILT, NOK, and others... more analyses to come on this sector. - Collaborations with Nokia and QCOM... The hype isn't in this sector yet, but ARK is marking ARKX and IZRL for a reason... get in before the FOMO, the sector will see a boom cycle soon. - High Shares Float is risk. - Blackrock, Goldman, and RenTec especially have positions and are increasing their ownership substantially. TA: - I see wave 3 of impulse wave, good to catch the wave 5... extension is likely as this trend catches on. QA: - Bullish options flow. - Citadel has some options on this, dont be greedy with this high float. TP1: 4.57 SL: 1.12 RRR: 2.99 PS: Trying to bring you more premium content with my consistent trading strategy and thought process.
AMEX:GSATLong
by UnknownUnicorn1043646
3
Pharma Patent Law Party Time!! $PHRRFSo here's my guess for the next short term bout of fun and awesome small cap volatility! Seriously though, I like how this company operates so far. Protective patents have been filed, they've already set up plenty of partnerships to get clinical trials rolling, and the blue-sky potential here is pretty staggering. No, really, it's suspiciously good. I'm obviously kinda dumb though, so it could just be a "stuck in my own thrall" kinda situation. Ok for starters, I'll admit that I don't care about the patent stuff. I'll explain why: I'm confident that the microneedle patch is protective enough that the whole issue of 'method of treatment' patents is negligible. But everyone is going to see "Clinical Trials for Big Disease! Big Yes!" Then they see it's for a generic drug and are all, "well that isn't how you print money!" and they scurry back into their dark abyss. Ok, so say it with me: " proprietary patch is patent protected." Don't worry, I'm totally gonna forget, too! But even aside from that, there is a (relatively-recent!) precedent set for patent protections in regards to "Methods of Treatment." It's a whole 'thing' that I'm not qualified to talk about, but I'm doing my own due diligence. Without looking though, I can say that a court case settled in 2018 is new by law standards, and new laws are frequently subject to challenges. For this reason, I'm gonna go ahead and anticipate a (temporary, brief) further drop in share price until everyone brushes up on the relevant patent cases. When everyone's homework gets turned in, I'm thinking we'll see $0.45USD. Idk, I really like when projected patterns line up with good fundamental markers- bonus points for ending on or near pretty, round numbers. I've gotta admit though, it's definitely feels like a stupid way to think, so it's probably dangerous to share the notion. Caveat stultus and all that. Regardless, the company still has a ridiculously small market cap when compared to other equivalent players in the psychedelic pharmaceutical space. Yeah, even after the recent gains. (To be fair, it could just mean that everyone else has much more room to fall.) Anyway! Let me know if I need to stop! :)
OTC:PHRRFLong
by pleasesendhel
$VAL/BTC woke up$VAL, Validity, previously known as $RADS, seems to have woken up with a major pump which lead it the oldest resistance the coin had. Personally consider this one a gem. At the moment it's in a retrace, which has a good chance of finding it's bottom around the 0.00007 BTC mark. Some realistic expectation would be that $VAL will trade in between the 0.00007 range and the 0.00028 resistance for further accumulation before breaking upwards towards higher targets. Expecting some harder resistance at the 0.236, 0.5 and 0.786 fiblines which are all historical important resistance levels. A decent target for a new all time high I see being the 2.618 fibline.
Long
by OZmaster
1