Small & Microcap Preview

BHT identifies meaningful trends and important supply and demand levels in the financial markets.  An understanding of these dynamics will add Alpha to any investment strategy.  The following are important factors to consider in the Small & Microcap Equity Sectors:

Russell 2000 - After making all-time highs last month, the IWMs are back in the middle of the range they have been in since November.  Short-term, $134 has been the lower side of the range and the top has been around $140.  Longer-term, there may be support around the $129-130 level because this was the top and an all-time high in June of 2015.

Russell 2000 Value - The move that IWNs made in the month after the election is one of the largest gains ever made in that timeframe.  Short-term, they are trading sideways.  Longer-term, the $105 level may be an important support level because it was important resistance three times over the past four years.

Russell 2000 Growth - The IWOs are consolidating above the $160 level after making new all-time highs in April.  There is support around the $160 level because it was the all-time high in June of 2015.

Russell Microcap - The IWCs have been consolidating around the $84.50 level.  This level is important because it was the peak and an all-time high in June of 2015. 

S&P Smallcap 600 - The IJRs have been trading sideways since December between $68 and $70.  Longer-term, there may be support around the $63 level because it was resistance last December.  

S&P Smallcap 600 Growth - The IJTs have consolidated between $148 and $155 since December.  Longer-term, there will probably be support around $140 because it was the top in August & September. 

S&P Smallcap 600 Value - The IJSs have been consolidating between $134 and $142 since December.  Longer-term, there may be support around the $125 level because it was resistance from early July through early October.

Russell 2000 Price Earnings Ratio -  The Russell 2000 PE ratio is currently 44.35.  Over the past five years the low was around 30 in early 2016.  The high was around 60 in the middle of 2014.

Small Cap Equity Momentum - The Russell 2000 Relative Strength Momentum Indicator is neutral.  This means that it unlikely that there will be a significant move over the next few days assuming nothing out of the ordinary happens.  

 

 

The Maltese tiger, or blue tiger, is a reported but unproven coloration morph of a tiger, reported mostly in the Fujian Province of China. It is said to have bluish fur with dark grey stripes. Most of the Maltese tigers reported have been of the South Chinese subspecies. The South Chinese tiger today is critically endangered, due to their illegal and continued use in traditional Chinese medicine and the "blue" alleles may be wholly extinct. Blue tigers have also been reported in Korea.

The term "Maltese" comes from domestic cat terminology for blue fur, and refers to the slate grey coloration. Many cats with such colouration are present in Malta, which may have given rise to the use of the adjective in this context.

 

The First American Volunteer Group of the Chinese Air Force in 1941–1942, nicknamed the Flying Tigers, was composed of pilots from the United States Army Air Corps, Navy, and Marine Corps, recruited under presidential authority and commanded by Claire Lee Chennault. The shark-faced nose art of the Flying Tigers remains among the most recognizable image of any individual combat aircraft or combat unit of World War II.

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The tiger shark is a species of requiem shark and the only extant member of the genus Galeocerdo. Commonly known as the "Sea Tiger", the tiger shark is a relatively large macropredator, capable of attaining a length over 5 m. It is found in many tropical and temperate waters, and it is especially common around central Pacific islands. Its name derives from the dark stripes down its body which resemble a tiger's pattern, which fade as the shark matures.