Here's Why We Can't Trust the Bullish Persistence

Jul 9, 2020

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01:13 PM PST

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While we'd seen hints of this prior to yesterday morning, Tuesday's intraday action and today's bullishness solidified the idea of the market finding support more often than finding resistance lately. Specifically, the S&P 500 has found a floor at the 50-day moving average line (purple) several times since snapping back to life in mid-April. The bulls have drawn a line in the sand there.


Identifying Value Early - STAF Ripe for Growth

Oct 21, 2020

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12:50 PM PST

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Good morning fellow investors! If it feels a little unusual to get your SmallCap Network newsletter in the morning, you’re not crazy - it is unusual. There’s a very good reason we’re sending this edition before the market opens rather than after the close today, however... we want to give our loyal readers early notice of a company that’s going to become a Featured Stock at the site this evening. It’s a timely idea too, in the shadow of Monday’s news of six U.S. companies becoming victims of Chinese cyberspying.


Just to set the stage, imagine a company on pace to grow annual revenue from a few million bucks to $300 million in just three years. Seriously. It’s possible when the right group of people see the right opportunity in the right industry and have the know-how to make it happen.

We're Dumping One Stock, But Putting Another on the Radar

Jul 9, 2020

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01:13 PM PST

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Welcome back, folks. We hope you had a good weekend. Of course, if you bet on California Chrome again to win the Preakness, you had a great weekend. While the payout might not have been stellar (the odds were only about 3-to-5 at post-time), a win is a win, and he was clearly the best horse in the field. Just amazing. This will be the first time in a long time I've actually been excited about the Belmont Stakes when he makes a potential Triple Crown run on June 7th.


We didn't come here to talk about horses though. Let's get right down to businesses, starting with an update of our current portfolio. We're making an exit on one of the positions, but found another we're interested in.


Portfolio Update

This Needs to Happen for Stocks to Escape a Meltdown

Jul 9, 2020

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01:13 PM PST

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We always love Fridays because they lead us into the weekend, but somehow this particular Friday was a more welcome end to the trading week than usual. It wasn't a bad trading week. Friday even ended up pushing us back into the black for the wee, though just barely. It was just one of those weeks where....well, it was annoying. We got within inches of a breakout, but once again the buyers got reeled in. Now we're back on the fence. (Sigh.)


These May be Yellen's "Pockets" of Overvalued Small Caps

Jul 9, 2020

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01:13 PM PST

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Yep, just as scripted, stocks followed through on Wednesday's weakness today. Also as scripted, all it took was a brush of the 50-day moving average line (purple) at 1867 to stop the bleeding for the S&P 500. That's the third time in three weeks the S&P 500 index pulled a tad below the 50-day line and then reversed course; the bulls are clearly drawing a line in the sand there.


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