Happy Hump Day everyone. It's been a wild last few weeks for stocks, but we all knew that was eventually going to happen. Nothing goes up in a straight line for long and that's what the major averages had done for months and months.
Just look at the S&P 500 here dating all the way back to the bottom of 2016. That's pretty parabolic, so everything that started happening a few weeks ago was pretty much overdue. The real issue now is whether or not that selloff three weeks ago was the start of something much bigger, or just another blip on the screen before equities start gunning for new highs again.
Small caps over the last few years have been a bit of a different story. Check out this chart of the Russell 2000, which is the benchmark for small cap stocks. Even though small caps have continued to do well throughout the same time period as the rest of the major averages, it hasn't come without some serious volatility along the way.
One thing's for sure though based on what we see here - every time small caps implode over the course of a few weeks or a few months, they've come roaring back and made new highs as a group - every single time. Is that what's going to happen this time around? I suspect so, because until stocks prove their done doing higher, we have to assume they're still going higher.
I'll tell you something that happens all of the time when it comes to running markets and individual running stocks. They WILL shake you out before they make their biggest moves. So if that's what the markets did a few weeks ago, then we've maybe yet to see the biggest move higher.
All I know is investors are more enamored with crypto currency and weed stocks these days than they are participating in the broader markets. That tells me stocks still have a long way to go higher, because until young adults are bragging around the water coolers at work over stocks they've made a killing in, stocks probably haven't topped out yet.
That's what they've been doing with the cryptos and weed stocks, and I'm sure you all have seen what has happened there over the last several weeks - all of them have been obliterated. But, I do still think Canada offers the best cannabis stocks on the planet right now.
We've talked enough about that for quite some time though, so I want to point all of your attention today to a resource that many of you may or may not be aware of when it comes to deciding which penny stocks you should buy, keep or sell.
That resource for US listed penny stocks is OTC Markets' web site located at www.otcmarkets.com. You can go there, type in a ticker symbol, and see everything from a company's financials to its management's contact information and so much more.
Believe me, all penny stocks are not created equal, so I would strongly encourage every single investor to do their diligence when it comes to any small speculative stock they're thinking about buying, holding or selling.
For those Canadian listed penny stocks, I like to use the TMX Money site located at www.tmxmoney.com. You can usually find most penny stocks there, and a lot of the same type of information you will find at OTC Markets for the US listed penny stocks.
As a matter of fact, it's my own opinion that the penny stock market in Canada is far better and far more efficient than the one down here these days - its regulatory environment for small penny stocks is better, they are far more accepted up there, and it seems that's where many of the real penny stock success stories are coming from these days.