Look at the top of this week’s table; small-cap sector ETFs dominate the leadership.
Leading the group is Small-Cap Technology $PSCT, which has just broken out of a major long-term base. The upside potential from here is meaningful.
When small caps start to behave like this heading into the new year, it’s a constructive signal for the broader market.
So what does it mean when the most speculative stocks are leading?
It’s anything but bearish.
Kenny will map out the earnings-reversal pattern he trades every season and show how VWAP acts as the anchor for timing entries during these December distortions.
The walkthrough highlights the same mechanics behind the sharp unwinds that follow forced selling.