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Spec Money Rushes Back Into Small Caps

Speculative money has started to flow back into the market.  After months of the small caps being dead and money flowing out of them, they have started to turn the corner higher.  Most small cap and micro cap stocks have declined over 50% off their highs, finding their ways to lows.  Finally, over the last few days, small caps are starting to roar.  Keep an eye on stocks like Encorium Group Inc. (OTC:ENCO), Conolog Corporation (OTC:CNLG) and any others on the dead lows of the chart that have been past monster runners.

The key to finding the next big runner is to look for past runners in the last few months.  In addition, find a stock that is on or pennies away from the dead lows.  Watch for any sort of volume to start and look for a major run.  Keep your eyes peeled, the next 25% runner is just around the corner.

Gareth Soloway
Chief Market Strategist