Watchlist: 12/8 SPY Rally – Small Caps to Launchpad

Market Notes:

The SPY is a little more than 1% off of all-time record highs. Sounds the market crash is canceled to me. The major indexes rally when the large caps do well. The small caps are still far off their highs but poised to fly.

Nearly every year the market experiences the “January Effect” where small caps outperform the large caps. It used to start after the first of the year. But now you’re missing out if you wait for the first of the year.

For best results, historically, investors should start buying by mid-December.

But the market has its own timing. Here’s the Russell 2000’s chart…

RUT 1-day candles – Chart via thinkorswim

The technicals show that the index just bounced off of long-term support. So the rally likely already started. TNA is a leveraged ETF that tracks this index. I opened a starter position in the find yesterday and am looking to add on dips.

Small caps are generally considered riskier large caps … And the ultimate risk class today is crypto.

I’m keeping a close eye on bitcoin as the price hovers near the 200-day moving average.

As the large caps soar to new highs watch for more money to pour back into risky trades as investors seek to “catch up.”

Futures are up, I’m risk on … But only watching a few stocks right now.

Watchlist:

CPIX is a low float, I’m watching for a setup above $6
DARE has support at $3
AHI has support at $5.50, resistance at $6.50
LWLG has resistance at $17

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