Editor's Note

The small cap sector cannot decide if it wants to rally or run hide. I am having a terrible time trying to find small cap stocks to recommend. Over the last two days I have looked at more than 350 small cap charts and it is a wasteland in terms of investable opportunities.

Remember two weeks ago the small cap indexes were on the verge of setting new lows. Last week they rallied while the big caps were sinking. This week they did collapse and the S&P-600 closed at a new 4-month low. When you translate that sector movement into the individual stocks, the charts are ugly. The short term volatility over the last three weeks has translated into a lot of new lows and some high volatility.

Rather than try and force a trade in a stock I am not that excited about, I am going to pass on new plays tonight and look again this weekend. If the healthcare bill goes to a vote on Friday, and fails to pass, we could see an ugly market. I expect they will hold it over until next week to have added time to negotiate. I am actually encouraged they pulled the vote for today. The longer they take the better chance of getting it passed in the House and that will be positive for the market.


No New Bullish Plays


No New Bearish Plays