- US markets close bang on the lows
- DOW down 236
- S&P 500 down 2.2%
- Russell down 3.2%
- S&P Financials down 2.9%
- Homebuilders down 4.2%
- VIX up 6% to 34
- Brazil ETF down 4%
Happy Thanksgiving!!
Happy Thanksgiving!!
This is a potential sign for a change in sentiment. If investors start to react to the real economic data again, which has been much better than what has been feared, small caps stand to benefit the most from valuation re-rating as many less liquid stocks have been demolished as of three days ago. Short squeezes are more likely in this area as well – the ax swings both ways with less liquidity.
The next segment to focus on is EM which has also been crushed. Both EM and small cap rallying would be strong confirmation of the rally. Watch the H-Shares overnight.
DOW up 152
S&P up 25 (2.2%)
Russell up 6.5%
XRT up 5.4%
Berkshire up 4.3%
