News Details – Smallcapnetwork
Russell 2000 Update - AK Steel Holding Corp. (AKS) Gets Lift
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February 2, 2024

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PDT

Another good day in stocks keeps the bears at bay for the time being. Even with some excellent earnings coming from a few of the big bank stocks today though, financials are getting beat up to close out the week. However, the S&P 500 seems to be gunning for its all-time high again, but whether or not it can get her done we'll see. There continues to be a rotation of sorts over the last few weeks, where basic materials and commodities seem to be picking things up - along with healthcare and biotech - while tech stocks continue to somewhat lag a bit. It's going to be real interesting to see what happens when those big tech names start to report later this month. As for small caps in general and some of our currently featured stocks, the Russell 2000 still seems to want to trade in an extremely wide range, but the longer this goes on the more it bodes well for the entire small cap space. It's a classic tip to Will O'Neill's Tea Cup and Handle charting patter, which suggests the long-term possibility of a breakout to the upside in small caps at some point down the road. It's not as if there isn't value in the small cap space right now, but nobody really knows at this point if the Russell is going to finally break out, or simply start moving lower again. We're finally getting some nice movement in AK Steel Holding Corporation (NYSE: AKS) after a number of days moving lower. All good now, but it's definitely going to need to find its way back above about $7 bucks if the stock is going to suggest even more upside ahead. That's the last time it started selling off again, but if what I'm seeing with AKS does continue and with Trump's plans to put a tariff hammer lock on steel imports from abroad, AKS could end up being a beneficiary of sorts. It's not one of the stronger steel companies out there right now, but for investors who like sub $10 stocks, it's one worth having a look at. Last, before we roll into the weekend, I showed you yesterday the recent move Senseonics Holdings, Inc. (NYSE: SENS) made a few days ago. Well, we got another move back to the upside today and based on what seems to be happening there, all it's going to take is one more big day and the stock could be ready to make an even bigger move. It's really important to remember when it comes to really small stocks like SENS, there's usually always big short positions in those stocks, but it doesn't mean short sellers have it any easier than buyers do. What I'm saying is if the stock starts to really rally, those short sellers are going to have to cover. As a matter of fact, it's usually the dumber short sellers that short something when it's way too low that end up getting their butts handed to them. The smart short sellers short high and cover low - just like smart investors buy low and sell high - or buy high and sell higher. We'll see what happens with SENS. However, I wouldn't want to be short based on what the stock has been doing over the last few days. See ya'll Monday.