logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Why Traders Need to Pay Attention to Small Cap Stocks Right Now

By  +Follow August 12, 2013 6:27AM
Share:
Tickers Mentioned:

In this week's interview with Toni Turner of TrendStar Trading Group, we discuss the explosive quarter for social media stocks, and possible weakness in the small cap space, and the implications that could have on the broader market.

EQ: While we're currently in the slower summer months and the broader indices have been relatively quiet, we're still seeing some meaningful movement in individual names. Is this a stock picker's market right now?

Turner: I believe it is. I amlooking in two sectors right now,  Industrials and Materials. In Materials, chemicals especially have been doing well. If you will notice, DuPont (DD) and Dow Chemical (DOW) have done very well recently. I am also watching LyondellBasell Industries (LYB) , which is based in the Netherlands. I’m just watching it to see if it will stay above the 50-day moving average. It’s consolidating here.

I’m not taking on a lot of big share size here because I am just a little dubious, and honestly, am expecting  summer profit-taking soon, unless we can get some really good news that will bring volume back in. Right now, investors are looking ahead to September, with the prospect of decreasing stimulus and the debt-ceiling battle in Congress. Neither of those events are positive for the markets.

EQ: Social media stocks have had a very impressive earnings season, with some of the leaders maybe hitting their turning points. Has this group caught your interest?

Turner: I have watched it from afar but it does appear that the Global X Social Media Index ETF ($SOCL) has done very well recently. It’s risen from $14 to $17, so it’s gone up about 20 percent in the last month or so on the earnings of companies like Facebook (FB) .

Facebook looks overvalued to me in the short term. So, if I were to enter, I would wait for a pullback. That also is true for LinkedIn (LNKD) . I would like to see it at a more reasonable valuation. .

EQ: One area of the market that often gets overlooked is the small-cap market, which could serve as a telling indicator of the broader strength of the market’s direction. Looking at the Russell 2000, what are you noticing here?

Turner: I am noticing that while the other indexes are up, the iShares Russell 2000 Index ($IWM) is not as enthusiastic as the Dow Jones Industrial Average, the S&P 500, or the Nasdaq. Actually, if you look at the intra-day chart, the IWM has a pivot line at the  $104.20 level..

IWM’s price is hovering just above that level now. Can it stay above it and then use it for traction? We will have to see if it can remain above it, and then climb up to the next  line of resistance of $104.70, and then in turn, use that  for support. The IWM has a lot of work cut out for it here. It’s made up of domestic U.S. companies mostly, and we know that if the IWM or the Russell 2000 is not as enthusiastic or excited as the rest of the market, then at some point the broader market usually follows it downward.

EQ: Are there any other sectors or industry groups that you're watching right now?

Turner: I am back to my favorite, which is the Utilities sector and the Utilities Select Sector SPDR ($XLU). People may say that it’s not exciting, and many traders ignore  it, but in Toni’s Market Club, many of our biggest and easiest profits have come from taking position trades and stocks from the XLU. For example, we held Aqua America Inc. (WTR) from December of 2012 through about April of this year for about a 20-percent no-stress gain .

I am still interested in water and I am still watching it now. With global clean water shortage a very real concern, I am keeping an eye on the PowerShares Global Water Portfolio ($PIO) to see if it breaks higher from here.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for DD
Stock Wire
1 Oct 14 14:10:27
E. I. du Pont de Nemours and Company (DD) - Roundup Review $DD http://t.co/EHUopLp9K3
12Stocks.com
1 Oct 14 12:58:42
Dow #Stocks Trend $KO $CSCO $TRV $NKE $MCD $VZ $T $INTC $MSFT $HD $WMT $DD $MRK $DIS $JPM $PG $XOM $CAT $IBM $V @ http://t.co/TvzJfd0RGT
Day Traders Group
1 Oct 14 12:56:09
Stochastic Bullish Crossovers http://t.co/pJ3i3ziqou $KANG $TEL $T $Z $XNET $WFM $SYN $TEP $VXX $IBB $DD $MU $PCLN & More
PoloPresotn
1 Oct 14 10:38:02
@findingchezz yeah kid I invested in $DD and now look at me http://t.co/gyQOBnmVTY
Mortimer Duke
1 Oct 14 10:34:08
Itching to buy many stocks today but I know October has more sales coming. $JNJ, $DD, $NUE, $NKE, $DIS among many others. Will wait.
ARK Genome
1 Oct 14 10:27:00
Thousands of local #WV lawsuits accusing a $DD #Teflon plant of poisoning people for 50 years are now going Federal. http://t.co/vlJgxOBVVj
Bio$$$Trees
1 Oct 14 08:10:47
@Bucktweet_Say @RNAiAnalyst short airlines, airline peanut cos, and hotels — long $PFE (purell) and $DD (biohazard suits)
Market Int Center
1 Oct 14 05:13:29
Du Pont $DD Trading Near $71.16 Support Level ( http://t.co/JtEjvuHuRS )
4-traders.com
1 Oct 14 05:10:15
E I Du Pont De Nemours : DuPont announces millionth vest made with DuPont™ Kevlar® XP™ http://t.co/W9UJeqSHaB $DD
4-traders.com
1 Oct 14 04:45:02
E I Du Pont De Nemours : DuPont announces millionth vest made with DuPont™ Kevlar® XP™ http://t.co/DvVh5zJOFp $DD
12Stocks.com
1 Oct 14 03:01:05
Weekly Dow #Stocks Trend $NKE $KO $CSCO $WMT $MCD $TRV $T $VZ $UTX $GE $INTC $DD $DIS $V $JNJ $AXP $BA $MSFT @ http://t.co/TvzJfd0RGT
Stock Forums
1 Oct 14 02:59:30
$AAPL Ex-Div Date Click Here: http://t.co/LLaXnaULxX Also See: $MCIG $BNS.TO $IDGC $DD ~
Investors Hangout
1 Oct 14 02:56:27
$WLOC Day High Click Here: http://t.co/cWuT5CAhQO Also See: $XLE $XIV $DD $GGAL ~
PD701
1 Oct 14 02:08:01
@jimcramer took some profits in $DD, $JPM, in my IRA looking to buy back in $COP with 3.5% yield. Steady Eddie, or no go
Rolly Atienza
1 Oct 14 00:46:53
$DD DD launched textile center in Divisoria http://t.co/hRrFvotFdx
Investors Hangout
30 Sep 14 23:35:36
$NEOM Yield Click Here: http://t.co/UQENiHBHjm Also See: $ACT $XRT $XOM $DD ~
Investors Hangout
30 Sep 14 23:13:15
$MRIB E.P.S. Click Here: http://t.co/DcVufUVt47 Also See: $DD $GDXJ $XLU $NTEK ~
12Stocks.com
30 Sep 14 22:27:08
Dow #Stocks Trend $KO $NKE $WMT $CSCO $TRV $T $MCD $VZ $GE $UTX $V $DIS $JNJ $INTC $DD $AXP $BA $MSFT $MRK $HD @ http://t.co/TvzJfd0RGT
Investors Hangout
30 Sep 14 21:24:05
$HHSE Tick Click Here: http://t.co/9E6kGZkyMm Also See: $DD $CNR.TO $QIHU $VZ ~
BUZZ Just-In
30 Sep 14 19:09:11
These assets are seeing a jump in tweets $COP $DD $DDD $GILD $GM http://t.co/pgqMzIbz0Z
Stock Forums
30 Sep 14 18:52:01
$CGRA Yield Click Here: http://t.co/2bN84j7TPc Also See: $DD $XLV $X $NHLE ~
Langan Stocks
30 Sep 14 18:32:45
Rosner: DD Du Pont (E.I.) De Nemours & Co., Inc. $DD http://t.co/ozkBqmciye
Rosner Stocks
30 Sep 14 18:32:42
Rosner: DD Du Pont (E.I.) De Nemours & Co., Inc. $DD http://t.co/4UHn8HUE8J
Rosner Stocks
30 Sep 14 18:28:15
DD Du Pont (E.I.) De Nemours & Co., Inc. $DD Company Overview Stock Message Board Recent Posts http://investor http://t.co/p1VsET5pqV
chartguy89
30 Sep 14 18:07:48
DD 71.76 Stock Charts $DD E.I. DuPont de Nemours & Co. (NYSE) Last Updated: 09/30/2014 20:07:45 DD Stock Chart http://t.co/SYMNDu7McO
Stock_Tracker
30 Sep 14 18:05:30
E.I. Du Pont De Nemours and Company (DD) 71.76 $DD Final Glance: Chemicals companies AP - Tue Sep 30, 5:04PM C http://t.co/Qn3aK4ODhu
Nathan Grove
30 Sep 14 17:14:19
@SusanLiTV #Ebola Everybody following vaccine makers; what about Personal Protective Equip $DD $APT $LAKE masks suits gloves before vaccines
Nathan Grove
30 Sep 14 14:18:59
@CNBCFastMoney @GuyAdami #Ebola Hello...PPE manufacturers will sell tons before any vaccine is approved $DD $APT $LAKE
Day Traders Group
30 Sep 14 13:52:45
Stochastic Bullish Crossovers http://t.co/pJ3i3ziqou $KANG $XNET $Z $VZ $TEP $TEL $T $WFM $AA $DD $PCLN $CELG $C $QCOM & More
Ariel Silahian
30 Sep 14 13:22:33
Algorithmic trading: OPEN Sep/30 BUY: $DD $TWTR $DATA
12Stocks.com
30 Sep 14 12:58:43
Dow #Stocks Trend $NKE $MCD $KO $BA $CSCO $T $HD $VZ $INTC $AXP $PFE $DD $TRV $UTX $DIS $MSFT $JNJ $PG $UNH $WMT @ http://t.co/TvzJfd0RGT
Daily Contracts
30 Sep 14 09:16:01
Real-Time feed of company contracts, original agreements and executive updates from DuPont $DD http://t.co/GfQjNq2gy8
Lua
30 Sep 14 07:42:48
$dd$
Media Sentiment
30 Sep 14 06:54:01
$DD received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 191
Media Sentiment
30 Sep 14 06:15:02
$DD received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 153
Stock Wire
30 Sep 14 05:05:18
Insider Selling: E I Du Pont De Nemours And CEO Unloads 86439 Shares of ... $DD http://t.co/iDNUo7MQhT
Sleek Money
30 Sep 14 04:53:52
Insider Selling: E I Du Pont De Nemours And CEO Unloads 86,439 Shares of Stock $DD http://t.co/Zifg9hDkhG
12Stocks.com
30 Sep 14 03:01:18
Weekly S&P100 #Stocks Performance $NKE $FB $FDX $MCD $GILD $SLB $MO $HAL $LMT $HD $DOW $SBUX $ACN $DD $APC more@ http://t.co/n4QZIDxy7w
12Stocks.com
30 Sep 14 03:01:01
Weekly Dow #Stocks Trend $NKE $MCD $BA $KO $CSCO $HD $T $INTC $VZ $AXP $DD $PFE $TRV $UTX $DIS $MSFT $JNJ $PG @ http://t.co/TvzJfd0RGT
Company Disclosures
30 Sep 14 01:00:03
$DD: Press Release #PseDisclosure http://t.co/YZQeK5b2V9
Dow Stocks
30 Sep 14 00:22:21
#Dow #stocks $DD E. I. Daily:-0.22% Weekly:0.78% YTD:12.42% Trend:50 / 100 http://t.co/CjT3D6GCtK
OTPicks.com
29 Sep 14 20:41:18
http://t.co/hjgLwIcNgz jim50: $DD Current Price Date=Sept-26-2014 Open=71.89: jim50 http://t.co/bY6tzYXmLL http://t.co/hjgLwIcNgz
OTPicks.com
29 Sep 14 20:41:18
http://t.co/hjgLwIcNgz danrocks: $GLUU any other opinions on this? $GE $TZA $DD: danrocks http://t.co/b74CXlC0f7 http://t.co/hjgLwIcNgz
bia martinez
29 Sep 14 19:21:45
RT @_marcoosxd: @biamartinezz_ boçal demais você, $dd$
MM 11⚽
29 Sep 14 19:21:30
@biamartinezz_ boçal demais você, $dd$
Troll Trader
29 Sep 14 18:39:57
RT @Philstocks_ACEC: $DD CityMall Tiaong, Quezon puts DD on course to meet the goal of completing & operating 25 CityMalls by end of 2015 &…
Philstocks.ph
29 Sep 14 18:39:51
$DD CityMall Tiaong, Quezon puts DD on course to meet the goal of completing & operating 25 CityMalls by end of 2015 & 100CityMalls by 2020
Philstocks.ph
29 Sep 14 18:35:25
$DD to open CityMall in Tiaong, Quezon
OTPicks.com
29 Sep 14 18:26:40
http://t.co/hjgLwIcNgz DennyT: CMG Insider Transactions $CMG $DD $ATHM $KMI: DennyT http://t.co/O9Xp7sOSy1 http://t.co/hjgLwIcNgz
OTPicks.com
29 Sep 14 18:26:39
http://t.co/QkCFZ8H3V8 DennyT: CMG Insider Transactions $CMG $DD $ATHM $KMI: DennyT http://t.co/s3sOHgLost http://t.co/QkCFZ8H3V8
				
				
By  +Follow August 12, 2013 6:27AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.