Small Caps Back to Green Just for Good Measure

One concept we have been rather repetitive about for Members of late has been to resist the urge to short indices, even the extended Russell 2000, small cap-dominated index, with any serious leverage (if at all), given this market's propensity for staging one squeeze after the next.

And even when the squeezes do not materialize, we see impressive sector and stock rotation below the surface. So, while turning a bit cautious is fine, stressing the importance of being an astute short-seller versus a brazen one who goes out in a blaze of glory is key. 

On the day, the Jack Dorsey names, SQ TWTR, turned in good showings, among others. TWTR seems ripe to finally make some type of move, as we close in on the one-year anniversary of them botching the buyout process. 

Overall, we are diligently tracking the market rotations on the long side, and selectively shorting specific situations.