iShares Microcap ETFの空売り状況は、投資家がiShares Microcap ETFの株価下落に賭けている度合いを知ることができます。空売りデータは2週間ごとに更新されます。

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The Fund seeks to track the investment results of the Russell Microcap Index (the Underlying Index), which measures the performance of the microcap sector of the U.S. equity market, as defined by FTSE Russell (the Index Provider or Russell). The Underlying Index is a float-adjusted capitalization-weighted index and includes equity securities issued by issuers with total market capitalizations ranging from approximately dollar 4 million to dollar 4.6 billion, although this range may change from time to time. The Underlying Index consists of approximately the 1,000 smallest issuers in the Russell 3000 Index plus the next 1,000 smallest issuers in the equity universe as determined by Russell. As of March 31, 2024, a significant portion of the Underlying Index is represented by securities of companies in the financial, healthcare and industrials industries or sectors. The components of the Underlying Index are likely to change over time.

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IWATSUKA CONFECTIONRY ORD by Iwatsuka Confectionery Co Ltd.

REV Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REVG#NYSE">REVG</a>) shares are trading higher after the company<a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/b44137657/rev-group-inc-reports-strong-fiscal-2025-first-quarter-results-reaffirms-2025-guidance" rel="noreferrer noopener"> reported&nbsp;first-quarter FY25 results</a>.
Net sales of $525.1 million beat the consensus of $492.77 million. Specialty Vehicles segment net sales fell 11.3%, while Recreational Vehicles segment net sales declined 8.5% Y/Y.
Excluding the impact of the Bus Manufacturing Businesses, total net sales increased&nbsp;3.1%&nbsp;year over year, aided by growth of 8.7% in the Specialty Vehicles segment.
Adjusted EBITDA stood at&nbsp;$36.8&nbsp;million versus&nbsp;$30.5&nbsp;million&nbsp;a year ago quarter. Adjusted EPS&nbsp;of&nbsp;40 cents exceeded the&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">street view of&nbsp;27 cents</a>
As of January 31, 2025, net debt totaled&nbsp;$108.4&nbsp;million, with&nbsp;$31.6&nbsp;million&nbsp;cash on hand.
Dividend: The board of directors disclosed its regular quarterly cash dividend per share of $0.06, payable on April 11, 2025, to shareholders of record on March 28, 2025.
In the quarter,&nbsp;the company repurchased around 0.6 million of its shares for $19.2 million.&nbsp;
<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">Outlook Reiterated</a><a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">:</a> REV Group reaffirmed FY25&nbsp;net sales forecast of&nbsp;$2.3 billion –&nbsp;$2.4 billion&nbsp;vs. an estimate of&nbsp;$2.35 billion&nbsp;and the adjusted&nbsp;net income <a target="_blank" href="https://www.benzinga.com/24/12/42440792/rev-group-posts-q4-results-projects-6-8-cagr-through-fy27-announces-250-million-buyback-dividend" rel="noreferrer noopener">of&nbsp;$116 million –&nbsp;$140 million</a>.
Investors can gain exposure to the stock via&nbsp;iShares Microcap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWC#NYSE">IWC</a>).
Price Action: REVG shares are up 7.11% at $29.24 premarket at the last check Wednesday.
Price Action:
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REV Group Posts Solid Q1 Earnings, Reaffirms 2025 Outlook Despite RV Segment Decline

VSE Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VSEC#NASDAQ">VSEC</a>) shares rose on Tuesday following the announcement of a definitive agreement to sell its Fleet business segment, Wheeler Fleet Solutions, to One Equity Partners <a target="_blank" href="https://www.benzinga.com//node/43776910" rel="noreferrer noopener">for up to $230 million.</a>
Wheeler Fleet Solutions is a parts distributor and engineering solutions provider servicing the medium and heavy-duty fleet market.
Wheeler Fleet Solutions&nbsp;employs approximately 385 people across three primary distribution centers in <a target="_blank" href="https://www.benzinga.com//node/43778129" rel="noreferrer noopener">Pennsylvania, Mississippi and Texas.</a>
The transaction is part of VSE&#8217;s strategic transformation, aimed at simplifying the business and focusing on its core business — aviation aftermarket services, according to a press release.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43789704/kim-kardashians-skims-joins-forces-with-nike-to-redefine-fitness-fashion-stock-gains" rel="noreferrer noopener">Kim Kardashian&#8217;s SKIMS Joins Forces With Nike For Fitness Fashion, Stock Gains</a>
John Cuomo, President and CEO of VSE, expressed that the divestiture is the final step in the company&#8217;s portfolio transformation, which will enhance its global leadership position in the aviation aftermarket parts and services market.
The sale includes a $140 million cash payment at closing, a $25 million seller note, and up to $65 million in contingent earnout consideration.
The deal is expected to close in the second quarter of 2025, subject to customary closing conditions.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, VSEC stock has gained over 41% in the past year. Investors can gain exposure to the stock via&nbsp;iShares Microcap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWC#NYSE">IWC</a>).
Price Action: VSEC shares are trading higher by 1.99% to $99.22 at last check Tuesday.
Read Next:
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What's Going On With VSE Corp Stock Today?

Micro-cap stocks can come in many shapes and sizes. Some might be once successful firms that lost their way and are looking to recover their prior glory. Others are companies that may have yet to generate any substantial revenues but could growth strongly if their offerings start to catch on.
Investing successfully in micro-cap stocks is difficult. Selecting the wrong company can lead to a loss of all or a substantial part of an investment. However, picking the right one could result in a big payday. The iShares Micro-Cap ETF (ARCA: IWC) has provided a total return of just over 100% over the past 10 years. That severely lags the SPDR S&amp;P 500 ETF Trust (ARCA: SPY), which has returned 266% over the same period.
Below, I&#39;ll dive into three micro-cap companies that show large potential upside but also carry significant risk.
<h2>Amprius: Advanced Battery Technology, But Significant Scale Is Needed</h2>
First up is Amprius (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ampx#NYSE">AMPX</a>) Technologies. The industrial company makes high-density lithium-ion batteries that use silicon nanowire anodes. Compared to the traditional graphite anodes that lithium-ion batteries use, these anodes take up less space, allowing them to package more lithium into a battery. This technology can substantially extend battery life in a variety of applications.
The company shows the range of a Tesla Model 3, and the flight time for a drone can be increased by around 75%. It also shows that its batteries can charge up to 80%, around five times faster than graphite anode batteries. The company&#39;s products are primarily used in drones and high-altitude pseudo-satellites (&quot;HAPS&quot;).
However, this company is extremely unprofitable. The cost directly associated with producing its batteries was around three times higher than the revenue it made from them. This gave the firm a gross profit margin of -195% last quarter. With over $12 million in revenue over the last twelve months, it is reasonable to think the company could be profitable if it scaled up massively.
Price targets are wide-ranging for this firm, but a target released by Oppenheimer implies 1,117% upside. Shares have been on the rise as of late after the company disclosed $20 million in new orders. Still, the company will need to achieve much higher sales than that to be profitable. It is designing a new manufacturing facility in Colorado to increase its production capacity.
<h2>Comstock: Expanding Capacity to Capitalize Off Solar Panel Recycling</h2>
Comstock Inc. (AMEX:LODE) is a decarbonization and recycling company. One of its biggest focuses right now is building up capacity to recycle solar panel metal and then resell it.
The company currently has no substantial revenues and frequently issues more equity to fund its operations. However, it does have substantial cash on its balance sheet that it can use for funding currently. Shares have been on the rise since the company recorded its first shipments and sales of renewable metal extracted from old solar panels.
The company recently secured its first lease for a large-scale facility to expand its recycling capacity. It believes that this part of the business could be profitable by 2026 and plans to have three facilities opened by then.
Right now, the stock is trading at just $5 million higher than its assets minus its liabilities, or its book value.
Getting traction in the solar panel recycling business could mean big things for the stock, as according to MIT, &quot;8 million tons of decommissioned solar panels could accumulate by 2030.&quot; Noble Capital Markets sees a 468% upside in this stock based on their $2.60 price target released on Aug. 13.
<h2>Marinus Hopes to Expand the Market for Its Key Drug</h2>
Last is Marinus Pharmaceuticals (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrns#NASDAQ">MRNS</a>).&nbsp;The company is currently waiting to release Phase 3 Food and Drug Administration (FDA) results for its drug ganaxalone.
The drug aims to treat Tuberous Sclerosis Complex (TSC). If approved, the company could use its drug to treat around 12,700 people.
The FDA has already approved the drug for a condition with similar symptoms. However, a TSC approval could generate much more revenue as it affects many more patients.
The average price target for the firm sits at $8.50. From the current $1.65 price, this represents an over 400% potential upside for the stock.
The company plans to release the results of this Phase 3 trial in less than a month.
If the results are strong, they could have a massive positive effect on the stock price. However, if they disappoint, they could also greatly hurt the stock price, leading to a big downgrade.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/3-micro-caps-set-for-major-moves-balancing-risk-and-opportunity/">3 Micro-Caps Set for Major Moves: Balancing Risk and Opportunity</a>&quot; first appeared on MarketBeat.

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3 Micro-Caps Set for Major Moves: Balancing Risk and Opportunity

Inflation in the United States cooled down in June for the third consecutive month. The Consumer Price Index rose just 3% year over year last month, down from an annual growth of 3.3% in May. On a monthly basis, the index declined 0.1% from May&#39;s flat reading. This marked the first monthly drop in inflation since 2020 and the slowest annual price gain since March 2021.
The so-called core inflation, which strips out volatile components such as food and energy prices, rose only 0.1% over the prior month, the lowest monthly core reading since August 2021, and 3.3% from the year-ago month. Both numbers are down from May&#39;s reading of 0.2% monthly growth and 3.4% annual growth.
Following the encouraging inflation data, markets priced in a roughly 89% chance that the Fed will begin to cut rates at its September meeting, up from 75% a day prior, according to data from the CME Group. This has deepened the market&#39;s confidence that the Fed would begin cutting interest rates in September, leading to a sector rotation from the hot technology sector to the laggards that could benefit from falling rates like industrials and small caps.
In particular, the small-cap Russell 2000, which has significantly lagged this year, jumped 3.4% to a more than three-month high. The S&amp;P 500 real Estate index jumped 2.8%, trimming its year-to-date losses to 1%. As such, ETFs from some beaten-down corners of the market saw smooth trading following the inflation data. These include iShares U.S. Home Construction ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/itb#BATS">ITB</a>), Invesco WilderHill Clean Energy ETF (ARCA:PBW), Virtus LifeSci Biotech Clinical Trials ETF (ARCA:BBC), iShares Micro-Cap ETF (ARCA:IWC) and SPDR S&amp;P Regional Banking ETF (ARCA:KRE).
<h3>Why Sector Rotation?</h3>
Small-cap stocks surged amid expectations that rate cuts would improve conditions for these companies. This is especially true as lower rates will lead to reduced borrowing costs, which help businesses expand their operations more easily, resulting in increased profitability. Many small and mid-caps companies have more floating debt than their larger counterparts.
High-dividend-yield sectors such as utilities and real estate will be the biggest beneficiaries of the rate cuts, given their sensitivity to interest rates. This is especially true as these offer higher returns due to their outsized yields. In real estate, lower rates can boost housing market activity by making mortgages more affordable. Additionally, securities in capital-intensive sectors like telecom will also benefit from lower rates. Businesses will also face lower loan rates over time.
Lower rates will also have a positive impact on consumer discretionary and financial services. Reduced borrowing costs can lead to increased consumer spending for consumer discretionary sectors. In the financial sector, while lower rates can compress net interest margins for banks, they can also encourage lending and potentially lead to increased consumer and business loan activity.
<h3>ETFs in Focus</h3>
iShares U.S. Home Construction ETF &ndash; Up 6.2%
iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index.
With an AUM of $2.5 billion, iShares U.S. Home Construction ETF holds a basket of 44 stocks, with a heavy concentration on the top two firms. The product charges 40 bps in annual fees and trades in a heavy volume of around 2 million shares a day, on average. iShares U.S. Home Construction ETF has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Invesco WilderHill Clean Energy ETF &ndash; Up 5.8%
Invesco WilderHill Clean Energy ETF offers exposure to companies that are publicly traded in the United States and engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds 71 stocks in its basket.
Invesco WilderHill Clean Energy ETF has amassed $296.2 million in its asset base and trades in a solid volume of around 383,000 shares a day. It charges investors 66 bps in fees per year.
Virtus LifeSci Biotech Clinical Trials ETF &ndash; Up 5.4%
Virtus LifeSci Biotech Clinical Trials ETF offers exposure to companies with promising drugs in clinical human trials that have not yet been approved by the FDA or gone into production. It follows the LifeSci Biotechnology Clinical Trials Index and holds 104 securities in its basket, with none accounting for more than 2.9% share.
Virtus LifeSci Biotech Clinical Trials ETF amassed $10.5 million in its asset base and charges 79 bps in fees per year from its investors. It trades in an average daily volume of 4,000 shares and carries a Zacks ETF Rank #2 (Buy) with a High risk outlook.
iShares Micro-Cap ETF &ndash; Up 4.9%
iShares Micro-Cap ETF offers exposure to very small public U.S. companies by tracking the Russell Microcap Index. It holds a large basket of 1,476 stocks with each accounting for no more than 0.5% of assets. IWC has key holdings in healthcare, financials, industrials and information technology with double-digit exposure each.
iShares Micro-Cap ETF has amassed $788.3 million in its asset base and trades in a volume of 27,000 shares a day on average. It has a Zacks ETF Rank #3 with a High risk outlook.
SPDR S&amp;P Regional Banking ETF &ndash; Up 4.2%
SPDR S&amp;P Regional Banking ETF provides exposure to the regional banks segment by tracking the S&amp;P Regional Banks Select Industry Index. It holds 141 stocks in its basket, with each accounting for no more than 2.4% of the assets.
SPDR S&amp;P Regional Banking ETF has AUM of $2.4 billion and charges 35 bps in annual fees. It trades in an average daily volume of 12 million shares and has a Zacks Rank #4 (Sell) with a High risk outlook.
<a href="https://www.zacks.com/stock/news/2300847/inflation-cools-in-june-triggers-spike-in-laggard-etfs?cid=CS-BENZ-FT-etf_news_and_commentary-2300847">To read this article on Zacks.com click here.</a>

iShares Dow Jones US Homenstruction Index Fund

PowerShares Exchange Traded Fund Trust WilderHill Clean Energy Portfolio

Inflation Cools in June, Triggers Spike in Laggard ETFs

Barnes &amp; Noble Education, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNED#NYSE">BNED</a>) shares are trading lower after it announced a short-term shareholder&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38270602/barnes-noble-education-announces-milestone-transactions-to-significantly-strengthen-balance-sheet-" rel="noreferrer noopener">rights plan and a new equity investment</a>.
In particular, the company inked a definitive deal with&nbsp;Immersion Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IMMR#NASDAQ">IMMR</a>) and existing shareholders and strategic partners regarding new equity and refinancing transactions to boost long-term financial position.
After closing the transactions in June 2024, Barnes &amp; Noble will receive $95 million of new capital through a $50 million equity investment and a $45 million fully backstopped equity rights offering led by immersion.
The deal is projected to infuse net cash proceeds after transaction costs of about $75 million.
Also, the company plans to eliminate about $34 million of debt through equitization of second lien term loans, reflecting the strong support of key strategic partners.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38273842/s-p-500-due-for-classic-10-correction-wall-street-veteran-warns-why-they-expect-zer">S&amp;P 500 Due For &#8216;Classic 10% Correction,&#8217; Wall Street Veteran Warns: Why They Expect Zero Rate Cuts In 2024</a>
Barnes &amp; Noble has received commitments to refinance its existing asset-backed loan facility, which provides access to a $325 million facility maturing in 2028.&nbsp;
Apart from this, the board of directors approved adopting a short-term stockholder rights plan and declared a dividend distribution of one preferred share purchase right on&nbsp;<a href="https://www.benzinga.com/pressreleases/24/04/b38270604/barnes-noble-education-adopts-short-term-stockholder-rights-plan" target="_blank" rel="noreferrer noopener">each outstanding common share</a>.
The rights will be exercisable only if a person or group acquires 10% or more of the company&#8217;s common shares and each right will entitle stockholders to buy one one-thousandth of a share of a new series of junior participating preferred stock at an exercise price of $5.00.
Investors can gain exposure to the stock via IShares Microcap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWC#NYSE">IWC</a>) and Invesco FTSE RAFI US 1500 Small Mid ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRFZ#NASDAQ">PRFZ</a>).
BNED Price Action: Barnes &amp; Noble Education shares are down 68.91% at 0.22 cents at publication Tuesday.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38273192/goldman-sachs-boasts-near-perfect-q1-results-5-analysts-zero-in-on-core-strengths">Goldman Sachs Boasts &#8216;Near-Perfect&#8217; Q1 Results, 5 Analysts Zero In On &#8216;Core Strengths&#8217;</a>
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Why Barnes & Noble Education Shares Are Diving Today

Casa Systems, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CASA#NASDAQ">CASA</a>) shares are tumbling after the company initiated a court-supervised Chapter 11 sale process to achieve value-<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/g38065337/casa-systems-initiates-court-supervised-chapter-11-sale-process-for-businesses" rel="noreferrer noopener">maximizing sales of its businesses</a>.
The company filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Casa Systems inked an asset purchase agreement to sell its 5G Mobile Core and RAN businesses, including Axyom Cloud Native 5G Core Software &amp; RAN Assets, to&nbsp;Lumine Group&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/LMGIF#OTC">LMGIF</a>).&nbsp;
The company has asked the Bankruptcy Court for approval to complete the transaction by the end of April.
Apart from this, Casa Systems entered into a stalking-horse asset purchase agreement to sell its Cable business to an affiliate of&nbsp;Vecima Networks, Inc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/VNWTF#OTC">VNWTF</a>).&nbsp;
The company has asked the Bankruptcy Court to approve procedures for soliciting additional bids and to set an auction for mid-May.
In connection with the sale process, the company inked a Restructuring Support Agreement (RSA) with over 98% of its senior secured lenders, allowing Casa to use its cash on hand and anticipated Cloud/RAN Sale proceeds to fund its operations and Chapter 11 process.
Michael Glickman, Chief Executive Officer, said, &#8220;Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets.&#8221;
&#8220;We also have incurred significant investments to bring our 5G Mobile Core and RAN products to market. We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers.&#8221;
Investors can gain exposure to the stock via&nbsp;IShares Microcap ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWC#NYSE">IWC</a>) and&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Action: CASA shares are down 80.4% at $0.05 on the last check Wednesday.
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Why Casa Systems Shares Are Tumbling Today

Many investors like the allure of small cap stocks. Buying the next Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) or Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) while they&#39;re still in their infancy is every investor&rsquo;s dream.
But investing in small cap stocks can be difficult. Many of them aren&rsquo;t covered by the Wall Street investment firms so it&rsquo;s hard to find research and opinions on them.
Investors who are seeking exposure to this part of the investment universe but don&rsquo;t want the risk of owning individual stocks should consider ETFs. These include the iShares Micro-Cap ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwc#NYSE">IWC</a>) and the iShares Russell 2000 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwm#NYSE">IWM</a>).
IWC tracks the Russell Microcap Index. It invests in companies that have a market cap between $50 million and $300 million.
<img alt="iwc.png" src="https://www.benzinga.com/files/u344550/iwc.png" style="height:400px; width:640px" />
IWM tracks the Russell 2000 index. It invests in companies that have a market cap between $300 million and $2 billion.
<img alt="iwm.png" src="https://www.benzinga.com/files/u344550/iwm.png" style="height:400px; width:640px" />

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2 ETFs For Small And Microcap Investors

Micro-cap stocks are an alluring yet confounding segment of the market. Stocks in this segment are generally considered to have market values ranging from $50 million to $300 million.
<h3>Taking Off Some Micro-Cap Volatility Risk&nbsp;</h3>
Due to those low numbers, micro-cap names typically lack analyst coverage and significant institutional buying. Even without those traits, the asset class offers significant upside potential. But stock picking among the smallest of the small can be difficult.
Enter the iShares Micro-Cap ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwc#NYSE">IWC</a>), which includes stocks with market values up to $1 billion, taking some of the volatility edge off micro-cap investing.
<h3>Micro-Cap Benefits, Risks&nbsp;</h3>
&ldquo;However, this asset-class is not without its drawbacks. Chief among these are greater volatility and limited liquidity and capacity,&rdquo; <a href="https://www.morningstar.com/articles/957944/micro-caps-under-the-microscope">Morningstar said in a recent note</a>.
&ldquo;Also, for fund investors, there are few options for exposure to this sliver of the market. It is a market segment where indexing is challenged. Fortunately, there are some better alternatives.&rdquo;
The $836.6-million IWC, which tracks the Russell Microcap Index and holds nearly 1,400 stocks, is one of those alternatives.
This segment of the market may hold potential benefits within the context of diversified equity allocation, Morningstar said.&nbsp;
&ldquo;Most notably, micro-caps have some diversification potential. This is evidenced by the fact that they are not perfectly correlated to other segments of the U.S. market-cap spectrum.&rdquo;
In other words, investors with large-cap heavy portfolios may want to consider IWC not just for the size effect benefits, but the benefits of reduced correlations as well.
<h3>&#39;The Primary Drawback&#39; Of Micro-Caps&nbsp;</h3>
IWC has perks, but there are disadvantages to be expected. An obvious one is that many micro-cap companies aren&#39;t profitable or are in outright financially precarious positions.
&ldquo;The primary drawback of investing in micro-caps is their higher volatility compared with large-, mid-&nbsp;and small-cap stocks,&rdquo; according to Morningstar. &ldquo;Also, the costs of obtaining information on these companies and monitoring them tends to be higher as they receive less &mdash; if any &mdash; attention from Wall Street.&rdquo;
IWC allocates nearly half its combined weight to the financial services and health care sectors. The former gives the fund some steadiness and exposure to smaller, but profitable banks with value stock appeal.
Micro-cap healthcare names usually dwell in the biotechnology and medical device spaces, meaning they are reliant&nbsp;on regulatory approvals and probably aren&#39;t close to profitability. As a trade-off, those stocks offer significant growth potential.
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Broad U.S. Equity ETFs

An ETF For Gains From The Equity Market's Smallest Corner

Smaller stocks and corresponding exchange traded funds have recently been enjoying renewed fanfare and rightfully so. Year-to-date, the iShares Russell 2000 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwm#NYSE">IWM</a>) is up 9.6 percent, or double the gains of the large-cap S&amp;P 500.
Smaller small-caps, or micro-caps, are performing even better. The performance of the&nbsp;iShares Micro-Cap ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwc#NYSE">IWC</a>) confirms as much.
<h3>
	What Happened</h3>
The $1.03-billion IWC is higher by 11.3 percent year-to-date. IWC, which is nearly 13 years old, tracks the Russell Microcap Index.
IWC&#39;s underlying index is &ldquo;exceeding the performance of Russell U.S. indexes measuring small-, mid-, large- and mega-cap stocks,&rdquo; according to new research from <a href="http://www.ftserussell.com/blog/index-idea-micro-caps-top-caps-ytd">global index provider FTSE Russell</a>.
IWC holds 1,359 stocks. At the end of April, the average market capitalization of the Russell Microcap Index&#39;s components was $657 million.
<h3>
	Why It&#39;s Important</h3>
The domestic focus of smaller stocks is helping the asset class, a scenario that is benefiting micro-caps as well.
&ldquo;Being more domestic has insulated micro-caps from trade tensions, geopolitical worries and the earnings drag stemming from a stronger dollar,&rdquo; said FTSE Russell Managing Director Alec Young.
The less global nature of micro-caps gives more exposure to positive trends such as tax reform, deregulation and faster U.S. economic growth, Young said.&nbsp;
&quot;All these tailwinds are helping drive faster profit growth for micro-caps relative to their blue chip counterparts, helping fuel YTD leadership.&rdquo;
Translation: the strong dollar that weighs on multinational large-caps is not much of a burden for micro-caps.
<h3>
	What&#39;s Next</h3>
Not surprisingly, IWC has a growth feel. Health care names, most of which are biotechs or pharmaceuticals companies, represent over one-quarter of the fund&#39;s weight, while the technology sector is 13 percent of IWC&#39;s weight.
Still, IWC&#39;s annualized volatility to this point in 2018 has been slightly less than the small-cap IWM&#39;s. Over the past three years, IWC has been barely more volatile than IWM. Since the start of the current quarter, investors have added nearly $55 million to IWC.
Related Links:
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<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/06/11857310/materials-etfs-show-signs-of-life">Cheaper EM Bond Funds</a>

ETF Performance Reflects The Strength Of Micro-Caps In 2018

It has been a ho-hum year for small-cap stocks as highlighted by a gain of 0.75 percent for the benchmark Russell 2000, and things are mixed for micro-cap exchange-traded funds &mdash; as just one of the three ETFs dedicated to smaller small-caps is up on the year.
An interesting election year phenomenon could be to blame for the slack showings for micro-caps to this point in the year, and investors should be careful if they are hoping for significant upside for these ETFs as Election Day nears.
<h3>Election Trends</h3>
&ldquo;As the US rapidly moves toward its next general presidential election, FTSE Russell examined the historical backtested performance of the Russell Microcap Index in more detail, finding that election year returns have been particularly variable for US microcaps. Specifically, general election years featuring an incumbent, notably 2004 and 2012, have been much kinder to microcaps than &#39;open election&#39; years featuring an entirely new slate of candidates, notably 2008 and thus far in 2016,&rdquo; said <a href="http://ftse.com/">FTSE Russell</a>, one of the largest providers of indexes for use with ETFs.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/16/05/8031482/1-out-of-every-10-americans-wants-gary-johnson-as-president-but-who-is-this-guy">1 Out Of Every 10 Americans Wants Gary Johnson As President, But Who Is This Guy?!</a></bzrelatedlink>
The $702.3 million iShares Russell Microcap Index (ETF) (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>) follows the Russell Microcap Index and is home to nearly 1,420 stocks. Year-to-date, IWC is down 2.7 percent.
The Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index) (NYSE: <a class="ticker" href="/stock/wmcr#NYSE">WMCR</a>), which follows the Wilshire US Micro-Cap Index, is off 3.7 percent this year. The PowerShares Zacks Micro Cap (ETF) (NYSE: <a class="ticker" href="/stock/pzi#NYSE">PZI</a>), which follows the Zacks Micro Cap Index, is bucking the aforementioned micro-cap election year trend with a gain of 1 percent.
<h3>Why PZI?</h3>
The reason why PZI is outperforming rival micro-cap ETFs is somewhat obvious. Healthcare stocks have been plagued by election year rhetoric and PZI allocates just 3.5 percent of its weight to that sector whereas IWC and WMCR each allocate more than 18 percent of their respective lineups to healthcare names.
PZI allocates nearly half its weight to financial services names, which are pricing in a June rate hike from the Federal Reserve. IWC allocates over 31 percent of its lineup to financial services names, making that sector the ETF&#39;s biggest sector weight.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/05/8029916/hewlett-packard-enterprises-ceo-a-donald-trump-presidenc">Hewlett Packard Enterprise's CEO: A Donald Trump Presidency Wouldn't Be Good For Business</a></bzrelatedlink>
&ldquo;Whether it is about &lsquo;hope and change&rsquo; as then candidate Barack Obama pledged in 2008, or presumptive nominees Donald Trump pledging to &lsquo;make America great again&rsquo; and Hillary Clinton&rsquo;s &lsquo;fighting for us&rsquo; in our current general election campaign, market indexes tend to reflect the market anxiety and uncertainty that is a natural by-product of political change. And while four presidential elections years don&rsquo;t necessarily make a definitive trend, index returns indicate that market uncertainty has not been kind to the smallest listed US companies,&rdquo; said Catherine Yoshimoto of FTSE Russell in a note.

Short Ideas

Politics

WMCR

Election Year Trends Don't Favor These ETFs

Approaching Tactical Bounces In Bear Markets

	During market corrections, correlations tend to go to one across asset classes, but more specifically global equity markets tend to move together. Throughout the global equity markets and U.S. sectors I follow, many tactical downside targets were met with momentum diverging positively, suggesting a relief-rally may occur over the next few weeks. Many of these markets followed up their mid-week reversals with follow through to end the week, which adds to the case for additional upside over the short-term. It&rsquo;s important to realize though that most of these moves are occurring within the context of structural downtrends / bear markets, which means this bounce is just that for the time being. Significantly more time will be needed to repair the long-term structural damage these markets have experienced.

	How you approach this type of scenario will depend on your plan as a market participant, but for me it really boils down to two main scenarios. Either you can choose to take tactical long positions to capitalize on these bounces, or you can simply wait for them to play out and re-enter on the short side at higher levels. Some people will do both, others may do something different altogether.

	If you&rsquo;re looking to participate in these counter-trend rallies, how do you figure out what&rsquo;s the best way to express the theme of counter-trend rallies occurring throughout the global equity markets when almost everything seems to participate in one capacity or another?

	I&rsquo;m sure there are a million schools of thought on this, but for me, I like to look for stocks / sectors / markets where the risk is well defined and the weight of evidence suggests that the probability of a bounce is high, relative to the other setups out there. I find that this occurs most often in names that have found support at levels where both structural and tactical downside targets were hit, with momentum diverging on multiple time frames. This means often passing on the more beaten down sectors where mean reversion could occur in rip-your-face-off fashion, in favor of a trade where the weight of evidence suggests there is a higher probability of success, but less potential reward. Some may be comfortable taking the lower probability trade in exchange for a higher potential reward, but I tend to lean toward what I view as higher probability trades.

	To illustrate exactly what I&rsquo;m talking about, I&rsquo;ll outline an example of each from the current market environment. I&rsquo;ll also list a few other names I&rsquo;m watching / doing more work on toward the end of the post, but won&rsquo;t post the charts of them here for the sake of space.

	&nbsp;

	<img alt="" src="https://allstarcharts.com/wp-content/uploads/2016/01/ewtbruni.png" style="width: 620px; height: 623px;" />

	The daily chart shows the failed breakdown below the August lows, which also corresponds with the long-term support discussed on the weekly chart. Momentum diverged at the recent lows with prices breaking back above the prior lows to confirm the failed breakdown and momentum divergence. This provides a level to trade against where the risk is well-defined, while the rest of the evidence suggests mean reversion may be underway in this market.

	<img alt="" src="https://allstarcharts.com/wp-content/uploads/2016/01/ewtbrini2.png" style="width: 620px; height: 623px;" />

	In the case of Taiwan, there is strong evidence across multiple time-frames that suggests a counter-trend mean reversion is taking place and that the risk is well-defined. Prices are 22% below the 200 day moving average, and though prices won&rsquo;t get there in a straight line, a calculated entry can provide a great risk/reward opportunity on the long side.

	Lower Probability But Higher Potential Reward: S&amp;P Metals &amp; Mining (XME)

	The S&amp;P Metals &amp; Mining ETF has been in a structural downtrend for the past 5 years or so, and just this past week reached another structural downside target at the 261.8% Fibonacci extension of the 2013-2014 rally. This occurred while momentum diverged and prices were extended from their accelerated trend lines. These developments may suggest that some mean reversion could start from current levels, but it must also be recognized that this comes within the context of prices being just off their all-time lows.

	&nbsp;

	<img alt="" src="https://allstarcharts.com/wp-content/uploads/2016/01/xmebruni.png" style="width: 620px; height: 623px;" />

	The daily chart shows the failed breakdown that occurred late last week with momentum diverging. This combined with the developments on the weekly chart provide a clear level to trade against. Prices are 67% below their 200 day moving average and this sector is heavily shorted, so a short squeeze could occur in the coming weeks if this failed breakdown holds. Although the potential reward is higher, it comes within the context of having less evidence / a lower probability than a setup like the one I discussed in Taiwan (EWT).

	<img alt="" src="https://allstarcharts.com/wp-content/uploads/2016/01/xmebruni2.png" style="width: 620px; height: 623px;" />In the case of the S&amp;P Metals &amp; Mining sector, there is some evidence across multiple time frames to suggest a counter-trend mean reversion may be in its early stages. The risk is well-defined, but there is less total evidence than a scenario like Taiwan, simply because we are at a level that hasn&rsquo;t been tested as extensively as the support levels in EWT have (or at all for that matter). With that being said, the lower probability nature of this setup is compensated by a potentially higher reward.

	Other markets that are exhibiting similar characteristics to Taiwan in varying degrees are:

	Micro-caps (IWC), S&amp;P Oil &amp; Gas Exploration &amp; Production (XOP), Airlines (XAL), Broker Dealers (IAI), Emerging Markets (EEM), Hong Kong (EWH), China Large-Cap (FXI), Russia (RSX), Chile (ECH), South Africa (EZA), and Netherlands (EWN).

	The Bottom Line: There&rsquo;s no right or wrong way to approach bounces during bear markets, but it is important to have a plan with which you approach trading counter-trend rallies when they do occur. When these types of market conditions are present, this approach is generally how I help narrow down my thoughts on which areas of the market I&rsquo;d like to focus my efforts and capital. It should also be noted that this represents the middle phase of my Top-Down Approach, and that the information I gather from this type of analysis may be expressed in a way that&rsquo;s different than simply trading the underlying asset class outright. That&rsquo;s a conversation for another day / post though.

	As always, if you have any questions feel free to reach out and I&rsquo;ll get back to you as soon as I can. <a href="http://stocktwits.com/BruniCharting?q=BruniCharting">@Brunicharting</a>

Emerging Markets

Technicals

iShares Dow Jones US Broker Dealers Index Fund

Market Vectors Russia ETF Trust Shares of Beneficial Interest

Bruni On Approaching Tactical Bounces In Bear Markets

With all the noise surrounding the recent sell-off in the U.S. stock market, it can be easy to forget that there are some areas of the market doing much better than others, and there is a lot of money to be made in the widening of those spreads. This is where intermarket analysis and ratio analysis can really become profitable for a portfolio. Today we are looking at the biggest companies in America, as a group, breaking out to new highs relative to the smallest companies in America: the Micro-caps.

	What this ratio tells us, as investors, is the direction of the flow of money. Are institutional dollars flowing into the riskier, smaller companies in the stock market, or is it going into the larger, more traditional, relatively safer segment of the market that is, the Mega-caps. To me, there is no better gauge out there for the Mega-caps other than the old Dow Jones Industrial Average. The 30 components that make up this Index are 30 of the largest companies in America: Apple, Microsoft, Exxon, JNJ, General Electric, etc. When we compare this group to the Russell Micro-cap Index, we get a very clear picture of the direction of money flow.

	Here is a 10 year chart of the Dow Jones Industrial Average ETF (NYSEARCA:DIA) relative to the iShares Russell Microcap Index (ETF) (NYSEARCA:IWC)

	<img alt="" src="https://allstarcharts.com/wp-content/uploads/2016/01/1-10-16megacapvsmicrocapblog.png" style="width: 620px; height: 462px;" />

	What stands out to me at first glance is the failed breakdown in early 2014 below former support that went back to 2008. This key level was also the 61.8% Fibonacci retracement of the entire 2006-2008 rally. To start 2016, this ratio is now breaking out above the downtrend line from 2012. In my experience, that failed breakdown will be the catalyst to send this chart soaring back towards those former highs from 2008 and 2011. That&rsquo;s a long way to go.

	We&rsquo;re looking at another 17% to the upside in this chart that I think can happen quickly. This potential return comes with a long position in the Dow Jones Industrial Average and an equivalent short position in the Russell Micro-cap Index. That&rsquo;s one way to take advantage of this, from an execution standpoint.

	On the other hand, just looking at this from an analytical perspective, if my thesis is correct and this breakout in Mega-caps relative to micro-caps is for real, then we&rsquo;re looking at a serious shift out of the more speculative micr0-cap stocks and into the more conservative, &ldquo;safer&rdquo;, mega-cap names. This is not something that usually occurs when the market overall is going up, but normally on when it&rsquo;s on its way down.

	This fits in well with my overall bearish thesis coming into the year. I&rsquo;ve been pounding the table <a href="http://allstarcharts.com/dow-jones-industrial-average-flirts-disaster/">to be short</a>, and that there is <a href="http://allstarcharts.com/20-downside-coming-sp500/">a lot more downside coming</a>. So I have to say that I am happy to see this particular ratio confirm what we&rsquo;re seeing elsewhere.

	This was originally posted on <a href="http://allstarcharts.com/about/">All Star Charts</a>

SPDR Dow Jones Industrial Average ETF Trust

U.S. Mega-Cap Stocks Break Out To Start 2016

One of the themes in the stock market this year has been the under-performance of small-cap stocks &ndash; and conversely, the out-performance of large-caps. Today&rsquo;s Chart Of The Day is a caricature of that theme as it involves a comparison between the very smallest stocks, micro-caps, and the very largest, mega-caps. Not surprisingly, the micro-caps have taken it on the chin this year relative to the mega-caps. In the past few days, however, the deterioration in micro-caps has accelerated, reaching a dubious milestone.

	As measured by the ratio between the iShares Russell Micro-Cap ETF (IWC) and the Rydex Russell Top 50 ETF (XLG), micro-caps are at a 3-year low and have broken their uptrend that has been in place since 2009.

	<img alt="" src="https://40.media.tumblr.com/995c4204a58fe4bc205556345ce24694/tumblr_inline_nzh1oaQjnJ1sq14jh_500.jpg" style="width: 600px; height: 396px;" /> 
	&ldquo;So what?&rdquo; you may say. &ldquo;Something always has to be leading and something else has to be lagging&rdquo; That is true. However, it is more bullish for the broad stock market when the smaller, more speculative issues are leading the way. When that is the case, it can be a sign of relative comfort and willingness to take on risk on the part of investors. Money will flow into stocks more readily under those circumstances.

	However, when the micro-caps are lagging and the largest, seemingly most secure stocks are leading the way, it can be a sign of apprehension by investors to take risk. Money is less likely to find its way into the stock market under those &ldquo;risk-off&rdquo; circumstances.

	Sure, we all know that these divergences can persist for some time. 2015 is a testament to that. Eventually, though, the small-cap weakness tends to leak into the broader market, including the large caps. The concern at this point is that the divergence has already persisted for some time. In fact, the micro-cap:mega-cap ratio topped back in March of 2014. So we are approaching 2 years of lagging small caps. At this point, the market segments that have thus far been able to avoid similar weakness are likely on borrowed time.

	So, does that mean go out and sell all of your strong-performing large-caps also? Not at all. In fact, the relative weakness in small-caps is due, naturally, in part to the healthy action in the large-caps. We are strong proponents of relative strength, i.e., buy what is going up. Therefore, if you are going to own stocks right now, the large-cap space continues to be a place that warrants an over-weight allocation.

	What about the strong seasonal pattern for small-caps? That is certainly a potential factor. As we noted in a few posts earlier this month, December has been exceedingly bullish for small-caps, particularly following an intra-month drawdown. Even if it wasn&rsquo;t a seasonally positive time of year, a mean-reversion bounce by the small-caps in some fashion would not be too surprising.

	However, we will go back to the topic of relative strength. What happens in the very short-term is highly unpredictable. However, concentrating on longer-term relative strength when allocating investments has worked best for us. Buying a stock in a long-term uptrend provides greater margin for error than trying to catch a falling knife. Even if you do not time your purchase ideally, you are swimming with the tide and are more likely to eventually see the position go your way.

	The trend is your friend, in other words. And the trend continues to be strongly in the favor of mega-caps and against micro-caps. And while there may be bouts of mean-reversion in the small-caps&rsquo; favor, a durable shift their way is unlikely at this time. On the contrary, given the recent relative breakdown, an acceleration of the current trend away from micro-caps may even be forthcoming.

	More from <a href="http://jlfmi.tumblr.com/About">Dana Lyons</a>, JLFMI and My401kPro.

	This was originally posted on <a href="http://jlfmi.tumblr.com/post/135360579925/slump-in-smallest-stocks-vs-biggest-stocks-is">Dana Lyons&#39; Tumblr</a>

Are Small Stocks Warning Of A Large Problem?

The recent rise in the value of the U.S. dollar versus its peers could eventually hurt the large multinational companies, however the smaller guys may benefit.

	During the third quarter the U.S. Dollar Index was up 7.7 percent, the second best quarterly gain since 1992.

	As the greenback increases, it makes products produced in the U.S. more expensive for foreign buyers. On the flip side a stronger dollar could benefit the smaller U.S.-based companies that generate the majority of their sales in the country.

	Approximately 77 percent of sales from the Russell 2000 companies from the U.S. versus more than 50 percent outside the country for the S&amp;P 500 stocks.

	With the small-cap stocks moving into correction mode this week and greatly underperforming their larger peers it appears it is time to look at bargains within the asset class. Drilling down even further to the micro-cap stocks will only increase the exposure to U.S. sales and offer unique opportunities to investors.

	One option for investors is to take a broad brush and invest in the entire asset class of micro-cap stocks via an ETF. The iShares Micro-Cap ETF (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>) consists of 1,384 micro cap stocks, which are characterized by companies that have a market cap between $50 million and $300 million.&nbsp;

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/14/10/4910743/3-retailers-for-a-potentially-robust-holiday-season">3 Retailers For A Potentially Robust Holiday Season</a></bzrelatedlink>

	That being said, there are a handful of stocks in the portfolio that are well above the $300-million figure.

	The top individual holdings include Avanir Pharmaceuticals Inc. (NYSE: <a class="ticker" href="/stock/avnr#NYSE">AVNR</a>) with a 0.60-percent holding, Tri Pointe Holdings Inc. (NYSE: <a class="ticker" href="/stock/tph#NYSE">TPH</a>) at 0.58 percent, and Ambarella Inc (NASDAQ: <a class="ticker" href="/stock/amba#NASDAQ">AMBA</a>) at 0.38 percent. The ETF is up 1 percent over the last year and down 10 percent over the last six months.

	The sellers have been in control of IWC and the sector over the last few months as the ETF hit the lowest level since October 2013 this week. The ETF has an expense ratio of 0.60 percent.

	There is also the option of investing in individual names, all of which are components of IWC.

	Paycom Software Inc (NYSE: <a class="ticker" href="/stock/payc#NYSE">PAYC</a>) is a cloud-based human capital management system that provides services like HR management, payroll and talent acquisition.

	PAYC second quarter revenues increased to $32.7 million from $23.4 million one year earlier. Since going public six months ago, the stock up 3 percent. It had a rally starting in the beginning of August to the middle of September and has since pulled back to support around the 50-day moving average near $16.

	Consolidated Communications Holdings Inc. (NASDAQ: <a class="ticker" href="/stock/cnsl#NASDAQ">CNSL</a>) provides a range of communication services to residential and business clients. Some of their services include high-speed broadband Internet access, custom calling features and private lines. CNSL&rsquo;s second quarter financials looks fairly similar to the same quarter a year prior.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/specialty-etfs/14/10/4907338/new-etf-for-international-ipos">New ETF For International IPOs</a></bzrelatedlink>

	Revenues decreased from $151.3 million to $151 million, while net income increased to $9.9 million from $9.3 million. The stock is up 42 percent over the last 12 months and 25 percent over the last six months. It has pulled back after a two-month rally has started to consolidate around $25.

	BioDelivery Sciences International Inc (NASDAQ: <a class="ticker" href="/stock/bdsi#NASDAQ">BDSI</a>) is a specialty pharmaceutical company that focuses in the area of pain management and addiction medication. BDSI was able to increase total revenue by five times in the second quarter. Going from $2.8 million last year to $13.9 million in the same quarter this year.

	The company was also able to increase their cash and cash equivalents from $23.2 million to $78.4 million from the end of fiscal 2013. Cash on hand like this could allow BDSI to acquire smaller pharmaceutical companies and further pad their bottom line, among other things. The stock is greatly outperforming its peers with a gain of 247 percent over the last 12 months and 130 percent over the last six months.

	Due to the small size of the stocks mentioned and the volatility that comes with micro-cap stocks the best option for most investors is the ETF. However, if individual stocks fit into a portfolio there can often be big winners in the smallest stocks in the market.

AMBA

AVNR

BDSI

CNSL

PAYC

Micro-Cap ETF And The Falling Greenback

After Tuesday&#39;s trading session, the bulls appear to have regained control of the markets.

	What a difference a few days can make in this business, right? Just about a week ago, traders were freaking out in response to David Tepper&#39;s suggestion that hedge funds shouldn&#39;t have the pedal to the metal at this time.

	Just like that, two days of hard-earned gains were reversed, the momentum stocks were back in the tank and it looked like the bears were about to win the day.

	The big correction traders began looking for never came: Russia didn&#39;t annex Ukraine, the ECB began serious talks to improve the economy in Europe and economic data in the US continued to beat expectations.

	Related: <a href="http://www.benzinga.com/general/education/14/05/4584742/can-the-bull-market-survive-a-momentum-meltdown">Can The Bull Market Survive A Momentum Meltdown?</a>

	On that note, the final GDP growth rate for Q1 is likely to come in below zero. But, the good news is that it can be blamed on the weather. And the general consensus seems to be that Q2&#39;s growth rate for the economy might have a four-handle on it.

	As such, investors are starting to realize that growth in the U.S. might not be dead after all. The bottom line is that with improving economic expectations comes higher stock prices - especially when expectations are low.

	S&amp;P 500 Weekly&nbsp;

	<img alt="spx_weekly_5-27-14.png" src="/files/images/2014/May/28/spx_weekly_5-27-14.png" style="width: 540px; height: 432px;" />

	Based on the weekly chart of the S&amp;P 500, one couldn&#39;t be blamed for wondering what all the fuss has been about lately.

	The action over the past few days has been very important. It is crucial to run through the charts because, as they say, a picture can indeed be worth a thousand words.

	S&amp;P 500 Daily&nbsp;

	<img alt="spx_daily_5-27-14.png" height="461" src="/files/images/2014/May/28/spx_daily_5-27-14.png" width="625" />

	After Friday, the key question was whether or not the S&amp;P 500 had actually broken out of the recent resistance zone. Yes, the index did close at an all-time high, but a magnifying glass was needed to see it on a chart.

	Given that follow-through has been exceptionally tough to come by this year, well, a lot of folks had their doubts about Friday&#39;s rally.

	However, with Monday&#39;s gain tacked on, it is fairly clear that the S&amp;P 500 has broken out to the upside. Therefore, the bulls will now be looking to defend their gains during the next bout of selling. The bottom line is that as long as the S&amp;P 500 stays above 1900, the bulls are still in control of the markets.

	NASDAQ Daily&nbsp;

	<img alt="nas_daily_5-27-14.png" height="461" src="/files/images/2014/May/28/nas_daily_5-27-14.png" width="625" />

	Some will argue that the chart of the NASDAQ isn&#39;t nearly as compelling. Those seeing the glass as half empty will contend that the tech-heavy index is a long way from confirming the S&amp;P&#39;s new high and as such, represents a technical divergence.

	Related: <a href="http://www.benzinga.com/general/education/14/05/4584865/does-the-s-p-have-anywhere-to-move">Does The S&amp;P Have Anywhere To Move?</a>

	In the opposing dugout, those adorned in rose-colored glasses may argue that the NASDAQ doesn&#39;t have to &quot;confirm&quot; anything at this stage. No, the idea here is that the downtrend that had been in place for about two months appears to have ended.

	Yes, the NASDAQ has resistance overhead to deal with. Yes, this could certainly be problematic at some point - perhaps soon. But the key is that stocks appear to be trending higher at the moment.

	And, since just about everybody on the planet was expecting the bears to be in control of the markets, well, the fact that there are uptrends to be found on many charts is certainly a positive development.

	The Micro-Caps, which is where the real damage occurred during the mo-mo meltdown, appear to have stabilized to some extent.

	iShares Micro-Cap ETF (IWC) Daily&nbsp;

	<img alt="iwc_daily_5-27-14.png" height="461" src="/files/images/2014/May/28/iwc_daily_5-27-14.png" width="625" />

	To be sure, the chart of the iShares Micro-Cap ETF (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>) is ugly. But remember, history has shown that if stocks involved with a momentum meltdown are able to stabilize, then the overall market needn&#39;t have to experience a serious decline.

	The thinking is fairly straightforward here. Up until the biotech, internet and social media darlings started to tank in earnest, the stock market was in pretty good shape. But when the leaders get hit - and get hit hard - a &#39;mo-mo meltdown&#39; can weigh on investor sentiment. Oftentimes, the meltdown can cause investors to lose faith in the overall market, which, in turn, produces more selling and a decent sized correction.

	However, IF the overall market can survive the meltdown and IF the mo-mo names don&#39;t drag down the rest of the market with them, the market has shown several times in the past that it can avoid calamity.

	So, IF the S&amp;P can remain above 1900 for a while, IF the NASDAQ can stay above 4150 and IF the low in the IWC can hold up, then the bulls might be able to begin yet another leg higher in what continues to be a most impressive bull market run.

	Positions in stocks mentioned: SPY

Previews

The Bulls Have Cause For Celebration, But Can It Last?

It is safe to say the current stock market is frustrating.

	But unlike 2013, when the environment favored the bulls for the vast majority of the year -- and it was the bears that wound up pounding their heads up against the wall -- in 2014, both teams appear to be experiencing some frustration.

	The bottom line is simple: From a big-picture standpoint, stocks won&#39;t go up, and yet the S&amp;P 500 can&#39;t seem to go down either.

	Related: <a href="http://www.benzinga.com/general/education/14/05/4559239/cheer-up-a-portfolio-pep-talk-for-investors">Cheer Up! A Portfolio Pep Talk For Investors</a>

	While the S&amp;P 500 finished Friday at a fresh all-time high, it did so by the slimmest of margins. Take a look at the chart below. Is that a breakout? Or simply a set-up for another in a long string of &quot;fake-outs&quot;?

	S&amp;P 500 Daily&nbsp;

	<img alt="spx_daily_5-26-14.png" src="/files/images/2014/May/27/spx_daily_5-26-14.png" style="width: 540px; height: 398px;" />

	Usually, when such a question occurs, it pays to review the charts of the other major indices. In short, if the DJIA, NASDAQ and/or Russell 2000 confirm the move in question, it is safe to assume that a breakout is a breakout. However, in this case, nothing is clear.

	Dow Jones Industrial Average Daily&nbsp;

	<img alt="djia_daily_5-26-14.png" height="461" src="/files/images/2014/May/27/djia_daily_5-26-14.png" width="625" />

	In looking at the chart of the Dow, it is clear that there is no breakout confirmation evident. In fact, there is still some important resistance overhead to deal with.

	The NASDAQ, which was impacted by the recent momentum meltdown couldn&#39;t be farther from confirming an upside breakout either.

	NASDAQ Daily&nbsp;

	<img alt="nas_daily_5-26-14.png" height="461" src="/files/images/2014/May/27/nas_daily_5-26-14.png" width="625" />

	However, an argument can be made that the downtrend in the NASDAQ may have ended. In order to confirm that the worst of the decline is behind it, the NASDAQ will need to continue to move up in the coming week and, perhaps more importantly, NOT fall back below the 4150 area.

	On the other hand, the chart of the micro-caps, which bore the brunt of the mo-mo meltdown, continues to look ugly.

	iShares Micro-Cap ETF (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>) Daily&nbsp;

	<img alt="iwc_daily_5-26-14.png" height="461" src="/files/images/2014/May/27/iwc_daily_5-26-14.png" width="625" />

	However, those seeing the glass as half-full will argue a base could be forming in the micro-cap space. And as one may recall, the key to the overall market moving up from here is for the micro-caps to STOP going down. They don&#39;t necessarily need to rebound. No, these beaten-down stocks just have to stabilize.

	So Is The Environment Improving, Or Not?

	Whenever this type of environment occurs, it is usually best to put one&#39;s emotions aside and review the readings of some market indicators. In short, it can be quite helpful to look at cold, hard numbers when things are &quot;iffy&quot;.

	To be clear, it is a good practice to review market indicators on a daily basis. However, looking at indicators over different time frames is an important way to diversify one&#39;s analysis.

	The &quot;State&quot; of the Market Environment

	Although there are some overlapping areas, the Weekly Environment Model is comprised of ten individual indicators or models. These ten can then be broken down into the following categories: tape, trend, sentiment, economic, monetary and the overall risk environment.

	In terms of weighting, the majority of the model weight is given to tape and trend indicators (60 percent) while the &quot;external&quot; factors account for 40 percent of the model. This fits with the view that one&#39;s overall objective is to stay in line with what the market IS doing.

	In short, whenever there are questions, the price/tape action of the market should always be viewed as the final arbiter. In addition, tape and trend indicators serve as excellent stop-loss signals for those times when the market&#39;s moves diverge from the &quot;logic&quot; of things like economics, news or earnings.

	Due to changes in data availability, the overall model was reworked at the end of 2011. However, the live performance hasn&#39;t been too bad. In 2012, using the leveraged ProShares Ultra S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sso#NYSE">SSO</a>) when the model was positive, the ProShares Short S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sh#NYSE">SH</a>) on negative signals, and a cash equivalent on neutral signals, the test of the model would have produced a return of 46.2 percent (compared to the S&amp;P 500 cash index return of 16.3 percent).

	Then in 2013, the model&#39;s return would have been 38.30 percent, versus S&amp;P 500&#39;s return of 33.26 percent. So while the history isn&#39;t long, it does seem worth watching what this model has to say each week.

	Since the explanation of the models and indicators that make up the weekly market environment model as well as the analysis of the current readings covers a fair amount of ground, the review will be broken up over the week.

	The Trend Indicators

	The weekly environment model contains three indicators that are dedicated to the trend of the overall market. For starters, it rates the&nbsp;short-term trend&nbsp;of the S&amp;P 500. For the purposes of this model, short term is defined as between five and 15 trading days.

	Next is the&nbsp;intermediate-term trend&nbsp;of the market. Here the focus is primarily on the market relative to its 10-week weighted moving average (which is moved forward two periods). And finally, a&nbsp;cycle composite is examined, which is combination of the one-year seasonal, four-year presidential and ten-year decennial cycles.

	Currently, the short-term trend rating is moderately positive, as the S&amp;P is above its short-term moving averages, which themselves are also moving higher at this time. See the first chart in this report if there are any doubts about this rating.

	The rating of the intermediate-term trend is positive. A quick peek of the S&amp;P 500 weekly chart versus its 10-week moving average should confirm this rating.

	S&amp;P 500 Weekly&nbsp;

	<img alt="spx_weekly_5-26-14.png" height="500" src="/files/images/2014/May/27/spx_weekly_5-26-14.png" width="625" />

	And finally, the cycle composite suggests that stocks should move higher next week. So the rating for the cycle composite is positive.

	When assigning a score of +1 for positive readings, 0 for neutral readings and -1 for negative readings, the overall rating for the trend components comes in at +3 for the upcoming week.

	The Tape Indicators

	The weekly environment model incorporates three &quot;tape&quot; indicators. These are the indicators that reveal the internal health of the market and helps to determine the &quot;oomph&quot; behind a move in either direction. The tape indicators include a&nbsp;breadth-confirmation system, a review of the&nbsp;supply/demand volume and a model that rates the&nbsp;technical health of more than 100 S&amp;P industry groups.

	Currently the tape indicators remain fairly strong. The breadth-confirmation system is positive as both the trend of the market and of the stock-only advance/decline line are above their appropriate smoothings.

	Next, the supply/demand volume relationship indicator is neutral at this time. Although demand volume remains well above supply at this stage, the trend of demand volume is down.

	And finally, the model that rates the technical health of more than 100 industry groups is moderately positive at this time. So, while these indicators are all intermediate-term or longer in nature, the group as a whole is positive.

	The bottom line is that both the trend and tape components of the overall environment model are currently positive - albeit not strongly so.

	Positions in stocks mentioned: SPY

Does The S&P Have Anywhere To Move?

In a <a href="http://stateofthemarkets.com/report/41667/">recent missive</a>, it was noted that momentum meltdowns don't necessarily lead to serious declines in the blue-chip indices.

	The article took a look back at history and found that there have been times (five to be exact) where the Dow and S&amp;P weren't dragged down when the music stopped in the mo-mo names.

	In fact, there have even been times where the S&amp;P moved higher while the momentum meltdown was occurring. However, the key takeaway from the look at past mo-mo meltdowns was that the damage in the high fliers often leads to a deterioration in investor sentiment, which, historically, has led to longer periods of "sloppy" or corrective action.

	Related: <a href="http://www.benzinga.com/general/education/14/05/4559239/cheer-up-a-portfolio-pep-talk-for-investors">Cheer Up! A Portfolio Pep Talk For Investors</a>

	Therefore, the primary question of the day is whether or not the S&amp;P 500 and the DJIA will be able to ignore the severe corrective action that has taken place in the biotech, internet and social media names. 

	Will the broad market just ignore the carnage in the micro caps and march merrily higher? Or will the sloppy action cause investors to lose confidence and eventually head for the exits en masse?

	So Far So Good, Right?

	The S&amp;P 500 closed Thursday about 5 points (or 0.26 percent) from the recent all-time high set on May 13th. As such, the bulls argue that the meaningful correction that almost everyone on the planet has been looking for, doesn't appear to be happening.

	If the market hasn't tanked during the much ballyhooed "Sell in May" period this year, well, the thinking is that maybe there won't be a correction after all in the near-term.

	However, the key to the bull case would seem to be the momentum names. IF the worst of the selloff is behind the market and IF the mo-mo and microcap names can stabilize, THEN maybe, just maybe, stocks can head higher from here.

	Related: <a href="http://www.benzinga.com/general/education/14/05/4555086/keep-your-portfolio-safe-from-traps-tracking-the-hidden-bear-markets">Keep Your Portfolio Safe From Traps: Tracking The Hidden Bear Markets</a>

	However, if the corrective phase in the areas that have been hit hard continues and/or intensifies, then history shows stocks may stay sloppy for a while longer -- and that investors may need to think about taking defensive action.

	Here is a look at some charts to see if there are any signs of stabilization happening.

	S&amp;P 500 Daily

	<img alt="spx_daily_5-22-14.png" src="/files/images/2014/May/27/spx_daily_5-22-14.png" />

	While 2014 has been no picnic for traders, anyone employing a buy and hold approach may be wondering what all the fuss is about. The bottom line on the S&amp;P is simple: It looks like a traditional consolidation pattern.

	However, if one takes a look at the S&amp;P on a longer-term basis, the story is even better.

	S&amp;P 500 Weekly

	<img alt="spx_weekly_5-22-14.png" height="500" src="/files/images/2014/May/27/spx_weekly_5-22-14.png" width="625" />

	In short, investors looking at the S&amp;P 500 on a weekly basis probably didn't even know there was any sort of "meltdown" happening.

	But anyone invested in small-cap and micro-cap stocks knows better.

	iShares Micro-Cap ETF (IWC)

	<img alt="iwc_daily_5-22-14.png" height="461" src="/files/images/2014/May/27/iwc_daily_5-22-14.png" width="625" />

	Although the Dow and S&amp;P are within a whisker of all-time highs, the charts of these small companies are clearly hurting. And the iShares Micro-Cap ETF (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>) remains in a textbook downtrend.

	The good news is that other areas of the mo-mo universe are starting to show some signs of improvement - such as social media.

	Global X Social Media ETF (NASDAQ: <a class="ticker" href="/stock/socl#NASDAQ">SOCL</a>)

	<img alt="socl_dailly_5-22-14.png" height="461" src="/files/images/2014/May/27/socl_dailly_5-22-14.png" width="625" />

	The SOCL ETF appears to have broken the downtrend line that has been intact since the beginning of March. The question of course, is if this area can avoid a relapse.

	A similar picture can be seen in the First Trust Internet ETF (NYSE: <a class="ticker" href="/stock/fdn#NYSE">FDN</a>). The bulls will argue that the downtrend has been broken and that a new uptrend could be forming now. Thus, this is a critical juncture on the FDN chart.

	First Trust Internet ETF 

	<img alt="fdn_dailly_5-22-14.png" height="461" src="/files/images/2014/May/27/fdn_dailly_5-22-14.png" width="625" />

	However, there is more good news in the next couple charts. First, is the XBI - the SPDR Biotech ETF (NYSE: <a class="ticker" href="/stock/xbi#NYSE">XBI</a>). Although the biotechs are not trending higher at this time, they are also NOT trending lower.

	SPDR Biotech ETF 

	<img alt="xbi_dailly_5-22-14.png" height="461" src="/files/images/2014/May/27/xbi_dailly_5-22-14.png" width="625" />

	The bottom line is the biotechs, which have been a critical sector in the mo-mo meltdown, appear to be basing at the present time.

	Let's look at one more chart to see if there are any signs of life - the NASDAQ.

	NASDAQ Composite Daily

	<img alt="nas_daily_5-22-14.png" height="461" src="/files/images/2014/May/27/nas_daily_5-22-14.png" width="625" />

	The bulls were pretty excited about Thursday's action on the NASDAQ as they argued that the Composite was possibly breaking out to the upside. However, the bears could be heard giggling in the background, so the jury appears to still be out on this score. Investors should continue to watch the action of the NASDAQ and the IWC very closely.

	Related: <a href="http://www.benzinga.com/general/education/14/05/4550371/how-to-climb-the-markets-wall-of-worry-safely">How To Climb The Market's 'Wall Of Worry' Safely</a>

	The key here is these beaten-down areas don't need to rebound for the broad market to survive. No, these sectors need to simply stabilize. Remember, the blue chip indices CAN ignore a mo-mo meltdown for a while. So, if the decline ends quickly and these areas stop going down, one could argue that the market has seen the worst of this corrective phase.

	Positions in stocks mentioned: SPY

First Trust Dow Jones Internet Index Fund

SOCL

Can The Bull Market Survive A Momentum Meltdown?

ETF Outlook for Tuesday, February 25, 2014

	iShares Russell Microcap Index ETF (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>)

	The large-cap stocks broke out today with the S&amp;P 500 touching its highest level ever. However, for the year the index remains lower by one point. The microcap stocks on the other hand continue to outperform the large-cap stocks again this year as measured by IWC.

	The ETF  is up 3.4 percent in 2014 and is closing in on the all-time high set in January. The ETF is now overbought and could see some healthy selling in the coming days before attempting a breakout, but the trend remains very bullish.

	SPDR Materials ETF (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>)

	The ETF traded twp pennies above the all-time high from 2008 on Friday before closing in the red. Yesterday the ETF came with four cents of the all-time high again before closing near the low of the day. Add in an RSI that is overbought and moving lower and the odds are a pullback is in store for the ETF.

	See also: <a href="http://www.benzinga.com/markets/emerging-markets/14/02/4340166/premarket-primer-tuesday-february-25-mt-gox-disappears-bitcoi">#PreMarket Primer for February 25 - Mt. Gox Disappears, Bitcoin Down 20%</a>

	Another red flag is the volume, which was more than double yesterday as the selling picked up near the end of the trading day. Support on XLB is at the $45 area in the event the chart is correct and a pullback is imminent.

	United States Gasoline ETF (NYSE: <a class="ticker" href="/stock/uga#NYSE">UGA</a>)

	The average U.S. price for a gallon of gasoline has risen for 17 straight days, the longest streak since May. The increase has added 15 cents to the price per gallon, however the price still remains 36 cents below the high of last year.

	UGA closed at a multi-month high last week and has been consolidating at the area for the last couple of days. If the ETF can hold above $60/share it could push the price back to the next resistance level of $64.

	Global X FTSE Nordic Region ETF (NYSE: <a class="ticker" href="/stock/gxf#NYSE">GXF</a>)

	The Nordic countries closed out a strong showing at the Winter Olympics and the countries continued to celebrate Monday as GXF rallied two percent to a new all-time high. The breakout on Monday was significant because the ETF has struggled to break above $24.75 for the last few months before the big move.

	The one issue with GXF is that it only traded 2,800 shares on Monday, which could make it difficult for investors to initiate large positions. The ETF is heavily weighted towards Sweden (53 percent) and also has exposure to Denmark, Norway, and Finland.

Commodities

Pre-Market Outlook

ETF Outlook For Tuesday, February 25, 2014 (IWC, XLB, UGA, GXF)

When it comes to investing, bigger is not always better. 

The large cap stocks are often the names that everyone knows and loves, however they may not be the best investment option when the goal is to make money.

	Large cap stocks are typically perceived as safer and more stable than the small cap stocks because they have been profitable for many years and have steady revenue. On the other hand, as a company matures they tend to get so big that future growth expectations will begin to diminish. That is evident in such companies as Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>); they are too big to get out of their own way and the market becomes saturated with their products unless they are able to reinvent their business model.

	Related: <a href="http://www.benzinga.com/etfs/sector-etfs/13/11/4088467/new-financial-etf-focusing-on-covered-calls-hfin">New Financial ETF Focusing on Covered Calls</a>

	The small cap stocks are not necessarily startups, but they a common thread that most have is above average growth. When an investor buys a stock they are investing in the future earnings of the company and high growth can lead to above average stock gains.

	There are a large number of ETFs that invest in small cap stocks in a variety of approaches. Investors must make sure to do their due diligence to find which small cap ETF meets the desired goals that are attempting to be achieved.

	iShares Core S&amp;P Small Cap ETF (NYSE: <a class="ticker" href="/stock/ijr#NYSE">IJR</a>)

	The ETF is a highly diversified basket of 602 stocks that focuses on the S&amp;P Small Cap 600 Index. With the top holding only making up 0.6 percent of the portfolio and the top ten holdings only accounting for 5.4 percent of the allocation, the ETF is truly diversified. The financials, information technology, and consumer discretionary stocks are the most heavily weighted sectors.

	Year-to-date the ETF is up 34.3 percent compared to a gain of 25.6 percent for the Vanguard Mega Cap 300 Index ETF (NYSE: <a class="ticker" href="/stock/mgc#NYSE">MGC</a>). The annual expense ratio is 0.17 percent and the dividend yield is 1.1 percent.

	iShares Micro Cap ETF (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>)

	Moving down another notch on the market capitalization ladder is the micro cap stocks, which are even smaller in size. IWC takes an extremely diverse approach to the asset class with over 1350 stocks and a top ten that only accounts for 3.2 percent of the ETF. The financial, health care, and technology sectors are the three largest sectors represented.

	Related: <a href="http://www.benzinga.com/etfs/sector-etfs/13/11/4088124/best-retail-etf-for-holiday-season-xrt-pmr-rth-amzn-wmt">Best Retail ETF for Holiday Season</a>

	The performance of IWC is nearly identical to IJR in 2013 with a gain of 34.2 percent. The expense ratio is higher due to the exposure to stocks that are not as liquid and the nature of the asset class. The annual expense ratio is 0.74 percent. The dividend yield is 0.9 percent.

	In most core portfolio allocations, but large cap and small cap stocks will be represented. However, it is integral not to over look the growth potential of small cap stocks when investing for the long-term.

MSFT

The Smaller the Better In ETFs (IJR, IWC, MGC)

In the battle between David and Goliath, we all know who came out victorious. When it comes to the stock market the mega-cap stocks play the role of Goliath and the micro-caps are David.

	Investors view the mega-cap stocks as stable and less risky than the other asset classes. Micro-caps are considered risky and volatile; the lottery tickets of the investment world. The questions are whether the assumptions are correct and which asset class is better for your portfolio?

	iShares Micro-Cap ETF (NYSE: <a class="ticker" href="/stock/iwc#NYSE">IWC</a>)

	The ETF is made up of over 1350 stocks that come from a variety of sectors that include financials, health care, and technology. After gaining 36.5 percent this year, the ETF is trading at a new all-time high. Since the bottom in 2009 the ETF is up an astonishing 231 percent. One of the benefits investors achieve with IWC is diversification throughout the entire asset class. The largest holding, Red Robin Gourmet Burgers (NASDAQ: <a class="ticker" href="/stock/rrgb#NASDAQ">RRGB</a>), only makes up 0.34 percent of the allocation, eliminating any stock-specific risk.

	The statement that smaller capitalization stocks will be more volatile is proven to be a myth with IWC. The chart of IWC is evidence that it has not had the wild swings that some of its peers have. The largest pullback the ETF experienced this year was 5 percent during the month of August, lower than that of the S&amp;P 500.

	Vanguard Mega-Cap 300 Index ETF (NYSE: <a class="ticker" href="/stock/mgc#NYSE">MGC</a>)

	Also hitting a new high is a group of the “who’s who” in the U.S. stock market. The basket of 292 stocks is led by household names Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) and Exxon Mobil Corp (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>). The median market cap of the stocks that make up MGC is $77.5 billion. Compare that with the $205 million median market cap for the stocks that make up IWC.

	The top ten stocks make up approximately 20 percent of the ETF, which is acceptable and does not suggest it is overweight any one stock. Similar to IWC, the largest sectors are financials and technology.

	From its low in 2009, the ETF has gained 157 percent and is up 24 percent in 2013. Both numbers are very impressive, but the pale in comparison to the returns that IWC has offered.

	The answer the question about which ETF is better for an investor’s portfolio in the future is difficult to answer because both offer exposure to such unique portions of the market. Looking back at history and the current performance of the two ETFs, it appears a combination of the two in a portfolio would be the best option for the average investor.

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