Small Cap Tape still very constructive

Tech Small Caps get a bid!

I get questions about a reference portfolio for subscribers of this newsletter.

The thing is my systems are so capacity constrained that that would not work.

So far, I love writing about stuff, that I like to write about and to clear my head. I post my positions from time to time just to give an idea how I read the tape and how I implement it. And I like to point out services I subscribe, and think are great to support them (not affiliated, I get no $ kickbacks other then they might endorse my twitter account). I just like to build a good trader network; I love to hear a ton of opinions and interact since trading is otherwise a pretty lonely endeavor.

If you ask me for a good stock picking service that is very scalable (capacity wise) have a look at

https://bluechipdaily.com/

I am a sub (but not affiliated!) and I follow the service since January 2020 and from what I have seen they have risk managed 2020 and 2021 in an excellent way and the service is pretty affordable (50$ a month I think). The approach is very balanced in terms of risk/reward, and they do not churn the whole portfolio weekly. Also, they point out situations where you have tons of time to get into positions (so they buy in a base not necessarily into a breakout where you got not time to get in or out).

And I want to point out (once again ;-), but this is an important market situation!) that my small cap reference systems are doing well.

Tech got a nice bid yesterday!

Positions of the tech small cap reference system —> very, very nice right tail distribution!

Check the news on $SOTK (not a buy recommendation!)

https://finance.yahoo.com/news/sono-tek-reports-strong-growth-120000061.html?.tsrc=rss

It fits what I see in the small cap market, small caps still have good eps estimate growth and they report good numbers so far.

All the small cap reference systems all do pretty well:

Energy:

China ADRs (not in an uptrend, but getting a small bid here, lets wait and see!):

Industrials hanging in there:

ADRs o.k.

Business Services o.k.

Financials strong:

Materials very strong:

Once again, all this points to a good tape.

Question is, will the big caps weaken more and drag down the small caps or is the small cap strength indicative for a broader rally? I bet on the later, though I think if we get a rally here, small caps will be strong in that rally.

Also have a look at this paper: https://www.robeco.com/media/2/2/2/22216a821f3b3844a5e6a9251c851545_202109-what-valuations-and-interest-rates-tell-us-about-equity-factors_tcm17-31805.pdf

Positions (in order of weight):

QRHC

GDP (added into the DD)

EPSN

BYDDY(China Play, I like the company and the stock shows nice relative strength)

USDP

TRNS

SMLP (nice rally yesterday)

HCCI

XLE

BBQ

HSON

MG (sold it by mistake and got in again ;-))

PTSI

PHX

SIM

CTHR

AINC

SBOW

ISENF

LMRXF

SGMA

URG

CCJ

FISOF

MIC

Great Trading!!!