Editor's Note

The small cap indexes have been trading sideways for the last four months. This is not a pattern that is conducive to profitable trades. We get a 4-5 day bounce and then a 4-5 day decline. 99% of the small cap charts look just like the Russell chart, or worse. The sharp decline over the last two days turned nearly every small cap chart bearish but this was due to headline event risk. It was not a general market decline on normal factors.


I have not been able to find a small cap play I want to add to the portfolio this weekend. We have no clue which way the market will open on Monday but without a negative headline, it should be positive. We could have a monster gap open relief rally that runs into trouble almost immediately as we close in on the budget battle the last week of April.

There is no reason to add a position just because it is a newsletter day. We need to wait until there is a trend or at least until a trending stock appears. I saw none this weekend.



NEW BULLISH Plays

No New Bullish Plays


NEW BEARISH Plays

No New Bearish Plays