Small & Mid Caps Deliver

S.T.A.Y.™ current position for Active portion of portfolio:  BUY – S.T.A.Y. Plus™ 

Last week the Small and Mid-Cap indexes made some major moves to begin narrowing the gap between all of the indices.  The Small Cap (Magenta)  and Mid Cap (Red) made weekly gains of 4.33% and 2.92% respectively compared to only a .92% gain by the S&P500 (Green) and a  -.27% loss by the Nasdaq (Light Blue). This is nice to see since they have been lagging behind the high-flying S&P 500 and NASDAQ indices YTD.  The growing divergence that we talked about in our July 1st update made a major turn last week towards closing that gap. The Average (Yellow Line) made a gain for the week of 1.98%.  The charts below show the growing divergence YTD and also a zoom in of last week that shows the Small and Mid-Cap indexes making a move that could start closing the divergence which is what usually happens over the longer term of market time frames.  The yellow line shows the weighted average of all indices which also represents the equity exposure that we have with S.T.A.Y. Plus™.  By equally weighting into each one, we obtain the broad market exposure that is desired regardless of which sector happens to be decreasing or increasing at any given time.  These divergences most often, over the long term, will consolidate closer together for most of the longer market time frames.

All Four Market Indices Used by the STAY Plus™ Strategy (Spans last week)

All Four Market Indices Used by the STAY Plus™​ Strategy- Yellow is the Average (YTD)

​Weekly S&P 500 Chart (with all-time hi shown)

​Monthly S&P 500 Chart (with all-time hi shown)