|  | | 2005 News and Press Releases | | |
HEADLINE NEWS:
Is Nasdaq Fading As The Small Stocks Resurge?
Staff Writer – Investrend
Securities Mosaic. December 2, 2005
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EXCERPT: Shares of the Nasdaq Market (NASDAQ: NDAQ) barely moved on 12-1, just as the Russell 2000 ETF (AMEX: IWM) delivered a chart break out. Dr. Joe Duarte, http://www.joe-duarte.com, recently noted: Few are talking about it, but the January effect, where small stocks tend to outperform large stocks may be getting close. The Nasdaq Composite is rolling over, and shares of the Nasdaq Market, a close cousin of the index, are looking toppy as well. To be sure, after a six week run, a bit of profit taking is to be expected. But profit taking, usually spreads across the entire market. Duarte continued: So, if there is profit taking, why did the small stocks hold up during the post Thanksgivings correction instead of falling along with the rest of the market? The answer is pretty simple. Either few people were selling small stocks, or a more than a few people are buying small stocks. More than likely it's a combination, which means that small stocks might be under accumulation. Duarte s Conclusion: Watch the small stocks. If the market falls and they hold up, it could be a signal that a big rally in the small names is near. |
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