Right now, there is tension between overbought technical conditions and an appetite for speculative trading.
To navigate small-caps effectively, it is much better to focus on the individual names rather than the indices.
Given that cannabis stocks have only begun to turn higher, I'm not going overly aggressive on this trade.
It wasn't apparent in the senior indexes, but parts of the market suffered their worst corrective action since September.
There's some messy action Wednesday as many of the names I follow are trying to digest earnings reports.
Everyone agrees that the market is extended and needs a rest, but this is a market for stock picking, not index timing.
Will the entire market drop in tandem or will there be rotation into lagging stocks?
Knee-jerk reactions to earnings results can create attractive opportunities.
Here and over the next few articles, I'll be highlighting small-caps with large potential gain potential.
I think the next few weeks are going to be very kind to aggressive traders that focus on finding quality setups.