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Daniel Sermersheim
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Daniel Sermersheim is an investor who has followed the market since 1993 and began investing in 1995. He specializes in small cap, undervalued stocks.
My blog:
Feraldo's Blog
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  • A Strong Market Breeds Strong Stocks

    Some hot stocks today, up on high relative volume:

    RFIL SNFCA BDSI APP STL POPE CRWS KSW PEBK BTC PAR CBM REED BSRR CFNL

    Most of those will have nice patterns as well.

    Today I have bought some KSW at $4 and look to accumulate some more. I had a bid in on CRWS for a while at $6 but pulled it and put a bid in on KSW instead. I still hold OFI and CLBH.

    The general market as measured by the S&P 500 is in a giant base with handle, with the breakout starting this week and confirmed if we close above 1420 today on the S&P 500. Here is a link to how I would view the breakout.

    stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p96456529413

    A very important factor from my perspective to confirm a possible longer term bull or good rally is the strength of small cap stocks versus large cap stocks. I measure this using the ratio of the Russell 2000 to the S&P 500 as charted here

    stockcharts.com/h-sc/ui?s=$RUT:$SPX&p=D&yr=0&mn=9&dy=0&id=p38619738156

    As you can see the Russell 2000 has been outperforming the S&P 500 since the beginning of August. This is great news as investors are becoming more speculative and this is also great news for us small cap investors. We will start to see many many breakouts and many big moves in the coming weeks. Unless, of course, there is some really bad news in the works.

    Speaking of news, the unemployment news out this week has been great. This could fuel a rally in and of itself.

    Happy investing all.

    Disclosure: I am long KSW.

    Tags: KSW, small cap
    Sep 06 2:21 PM | Link | Comment!
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