Why are investors turning their attention to mid-cap stocks?
This will be the 2 questions we will be discussing today
1. So, what is happening on this divergence and its implication?
2. And who is leading who?
a. Large cap leading the mid-to-small cap market? Or
b. The mid-to-small cap leading the large cap market?
The answer: The mid-to-small cap is leading the large cap market and why is it so?
If recession hits, hypothetically mid-to-small cap stocks employing the majority of the work force or employees in United States will be the most affected, this huge workforce is also considered as the mass consumer.
The large cap stocks, their business depends on the mass consumer. If the mass consumers start to tighten their belts, the large cap stocks revenue will also be affected subsequently.
Some reference for traders:
E-mini S&P MidCap 400 & Option:
Outright:
0.10 index points = $10.00
Micro E-mini S&P MidCap 400:
CME ClearPort:
0.05 index points = $0.50
E-mini Russell 2000 & Option:
Outright:
0.10 index points = $5.00
Micro E-mini Russell 200
Outright:
0.10 index points = $0.50
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
1. So, what is happening on this divergence and its implication?
2. And who is leading who?
a. Large cap leading the mid-to-small cap market? Or
b. The mid-to-small cap leading the large cap market?
The answer: The mid-to-small cap is leading the large cap market and why is it so?
If recession hits, hypothetically mid-to-small cap stocks employing the majority of the work force or employees in United States will be the most affected, this huge workforce is also considered as the mass consumer.
The large cap stocks, their business depends on the mass consumer. If the mass consumers start to tighten their belts, the large cap stocks revenue will also be affected subsequently.
Some reference for traders:
E-mini S&P MidCap 400 & Option:
Outright:
0.10 index points = $10.00
Micro E-mini S&P MidCap 400:
CME ClearPort:
0.05 index points = $0.50
E-mini Russell 2000 & Option:
Outright:
0.10 index points = $5.00
Micro E-mini Russell 200
Outright:
0.10 index points = $0.50
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com/cme/
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