{"id":43090,"date":"2013-10-16T05:49:45","date_gmt":"2013-10-16T09:49:45","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=43090"},"modified":"2013-10-16T05:49:45","modified_gmt":"2013-10-16T09:49:45","slug":"a-bullish-undercurrent-thats-impossible-to-ignore","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/16\/a-bullish-undercurrent-thats-impossible-to-ignore\/","title":{"rendered":"A Bullish Undercurrent That\u2019s Impossible to Ignore"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

I routinely get railed for my optimistic bias. But this week, I\u2019ve been receiving an inordinate amount of fan mail, expressing the same disgust.<\/p>\n

They all go a little something like this\u2026<\/p>\n

\u201cThe nation is on the brink of total collapse. Yet you\u2019re out issuing bullish memes? How could you possibly be so ignorant? I\u2019m unsubscribing from this nonsense immediately!\u201d<\/p>\n

I\u2019ll miss you. Seriously. But I\u2019ll be here to welcome you back with open arms once you realize it has nothing to do with ignorance.<\/p>\n

It has everything<\/i> to do with ignoring what Peter Lynch appropriately deemed \u201cbackground noise\u201d – events that ultimately have no bearing on our long-term investments. Instead, I focus on meaningful market information that does<\/i>.<\/p>\n

With that in mind, there\u2019s a serious bullish undercurrent in the market that warrants turning a blind eye to the tussle in Washington and staying the course.<\/p>\n

So whether you\u2019re a bull, bear, or flat-out confused, listen up\u2026<\/a><\/p>\n

Small Caps Breaking Out<\/b><\/p>\n

There\u2019s no better leading indicator than small caps<\/a>.<\/p>\n

Or as Sam Stovall, Chief Equity Strategist at S&P Capital IQ, said, \u201cWe found that small-cap stocks, as long as we’re in bull market<\/a> mode, tend to be in a leadership position.”<\/p>\n

Guess what? They\u2019re leading.<\/p>\n

At the first whiff of an accord between Republicans and Democrats on Monday, calm returned to the broader market. The S&P 500 held its 50-day moving average support line.<\/p>\n

Small caps, on the other hand, did much more than just hold firm. They broke out. In fact, the Russell 2000 Index surged to a new all-time high.<\/p>\n

\"\"<\/p>\n

If you\u2019re an institutional buyer or hedge fund manager ignoring small caps right now, well\u2026 you might lose your job!<\/p>\n

Small caps will continue to drive the market for the foreseeable future, too.<\/p>\n

As we all know, small caps tend to be the most sensitive to the domestic economy. So if politicians really posed a long-term threat to the economy \u2013 and, in turn, the bull market – small caps would be sinking, not soaring.<\/p>\n

That\u2019s not happening.<\/p>\n

In fact, over the last six months, the performance gap between small caps and the S&P 500 actually widened<\/i>. After trading neck and neck for the year, small caps are now up 20%, compared to a 10% rise for the S&P 500 since April.<\/p>\n

Now, before the week is out, we\u2019ll be releasing our latest issue of WSD Insider, <\/i>which reveals two more bullish undercurrents in the market that also warrant your attention right now. To discover what they are – along with the latest small-cap stock I\u2019ve uncovered to capitalize on the situation \u2013 sign up for a risk-free trial here<\/a>.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

The post A Bullish Undercurrent That\u2019s Impossible to Ignore<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: A Bullish Undercurrent That\u2019s Impossible to Ignore<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com I routinely get railed for my optimistic bias. But this week, I\u2019ve been receiving an inordinate amount of fan mail, expressing the same disgust. They all go a little something like this\u2026 \u201cThe nation is on the brink of total collapse. Yet you\u2019re out issuing bullish memes? How could you possibly be so … <\/p>\n

Continue reading “A Bullish Undercurrent That\u2019s Impossible to Ignore”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-43090","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=43090"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43090\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=43090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=43090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=43090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}