Securities Research Services

Tuesday, October 02, 2007

Small Caps Starting to Take Over

The new quarter got off to a raging start as bear's arguments for a double top stung them badly. Most impressive here is the rotation into the small cap sector. The Russell 2000 is finally getting some play as money starts to move back into the more speculative stocks again.

There has been in place a flight-to-safety and the small cap index has been lagging. We suspect that the faster moving small cap stocks are going to start offering some excelling opportunities in coming months.

Once again, dips are buying opportunities. Days like yesterday are fun, but they don't offer the best entry opportunities. Weak days, like last Friday, when the bears are roaring and the bulls are biting their nails, are the days to get aggressive with your buying. Embrace the dips, don't fear them.

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