Regardless if you follow the stock market daily like I do or just monthly, we’ve all been hearing about rising interest rates for months…
While many traders think stocks are set to dip, the truth is rates rising off of historically low rates actually tends to occur when the economy is picking up. So the market actually trades higher!
In fact, the Federal Reserve’s pumping over $100 billion into the market each month in its bond-buying program. So even if interest rates do rise over the next several years, they’ll still be rather low.
In other words, money is going to be cheap for a while!
But that’s probably left you wondering where that leaves the top small-cap stocks for fall 2021, and why they’re holding up better than large caps.
Well, it’s called inflation…
These Are the 2 Top Small-Cap Stocks for Fall 2021
If you look at momentum levels on the S&P 600, which covers small caps, and compare it to the S&P 500, you’ll notice the number of small-cap stocks trading above their 50-day moving averages is significantly higher.
Investors also tend to sell larger stocks that are interest rate sensitive like tech names, moving into smaller companies that face less inflationary pressure….
And that’s what we’re witnessing right now!
The Russell 2000 is already crossing it’s 50-day MA to the upside…
While the Dow Jones Industrial Average, S&P 500 and the Nasdaq all remain stuck in the “twilight zone,” or what I like to call the area between the 50- and 200-day MA, where markets don’t quite know what to do.
That’s why I wanted to give away the two top small-cap stocks for fall 2021 that don’t have substantial interest rate sensitivity, and should trade higher in the near term.
So check out my short video below to get the tickers…
Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to!
P.S. Ready for the next “extreme” move?
CNBC just announced that the stock market is primed “to be pretty extreme in either direction.”
To Joy of the Trade Head Trader Jeff Zananiri, that’s a massive opportunity for overnight explosions…
Gains like 126%… 138%… even 246% like we’ve seen already — all overnight!
