What's up Welcome! Oh geez. I Fell get back up here we go. We're back. Welcome back to Small Cap.

Recap Everybody how we doing now. We're doing it early this week. As you may be able to tell, today is a Monday We're doing this early for a couple reasons. uh, just scheduling.

Whys it works out best? But I'm thinking I'm wondering I have a question that is going to be addressed in this video and I guess only time will tell. But this week we are going in to another rate hike decision. Are we going to hike up interest rates? Are we going to keep them kind of where they're at? Are we going to I Highly doubt cut them I Don't know. we'll see.

Um. but we have officially entered into a new bull Market. We're out of the bear Market Uh, according to you know technical technical terms here. Very interesting that the week of the week of a new uh Fomc meeting or whatever it is, uh, you know, decision rate decisions, we're going into a bull market I don't know where we're at and I don't obviously I'm a small cap Trader This is normally small cap recap, but this does have a pretty big impact on just kind of where the overall Market is.

We've had some Runners Um, but nothing crazy yet and the longer the interest rates remain up, generally the less small cap. Runners we're going to see there's less money flowing into the market. Um, again, large caps are crushing it Right now. Large caps are looking great.

Whether this is a short squeeze or a lot of buying back. I I Don't know. couldn't tell you. Um.

but my only worry is that if we do raise rates this week, could we crash? No, not crash the new bull market. But could we end that pretty quick? And if so, um, will money will any movement trickle down into small caps? Well, let's kind of take a look at everything. where we're at right now, where the market's at and I want to leave you today with more of a question and ideally just you know, waiting and seeing here. Um, kind of with the overall Market to see what we might get for the small cap.

So let's dig into the charts. Uh June There we go. Boom here we are with the spy Spy is through 4 30 which is a pretty big level and we've broken out of some really key daily chart Trends here that I'm excited about I Think we might have even talked about them a little bit unless time. Small cap recap based on the trend lines I have drawn, it looks like we have.

um, so you know we've got this really nice perk. We we broke out of a lot of the consolidation zones and now here we are parking through the 430s but again, we've we haven't really had a strong dip in a while. and you know if it's not priced in if rate in hike, Uh rate in Hikes rate hikes are not priced in if increases to it. This could send us back down into the, you know, maybe the lower 400s.

Um, and we still have a lot of healthy range left. which is what is good about this, right? We're seeing this uptrend forming from basically October of 22 all the way up into here. We've got this nice uptrend going. We can still dip down I mean basically to 400 and remain in an uptrend.

so I wouldn't be scared, but it could put a halt to some momentum and we're seeing this in stocks like Tesla now Tesla is just I Was looking at this chart I Hadn't looked in the daily chart in quite a while because this is nuts. This bounced from a hundred up to 250 and really just basically three months form. okay, maybe a little bit longer beginning of this year 2023. Basically the beginning of the year basically marked our bottom for Tesla so far at 100.

we're up at like 250 now. This is a really crazy bottom that it in and I mean it's got yeah, if it falls back down, it could still very easily. If even if it doesn't just crash, it's got a lot of ways down to its next real support level down in the 150s that most recent support. Um, which gives me some hope that even if this dips, we could still see continued uptrend.

Maybe we are out of the worst of it. This was a large dip on the spy and a lot of large caps and I want to even go back to Carvana I Can't remember if I had talked about this trade much last week, but I actually did have a really nice trade on it I had a basically started buying in uh, on this perk after this breakout of this kind of multi-day consolidation which I'm going to zoom in the chart a little bit better so you can kind of see it. We had a really nice perk a couple months ago early January and then we faded off and then we got another higher low. We got a couple series of higher lows I mean our first low Starts Here higher low here higher low here higher low here.

Then we get this break out of this recent consolidation pardon me and we perked up above 950s and held and Consolidated sorry, excuse me Uh, once again, I was really a big fan of how Carvana was shaping up for a bounce here. Um, and I didn't quite start in there I actually started it once we I did start in this day on this Gap up through 14, we broke out, consolidated a little bit and added in on one of these dip days and we got a big big breakout and that's what I'm excited about in the large cap space. I Think that this Market has certainly led to a lot of stocks. I Mean remember, Carvana was up in the 370s.

it went down to three dollars. That's nuts. We have a lot of stocks that are going to probably have bigger than expected bounces in the large cap space, which that's when they can start having a lot of range and almost acting like small caps in a way. they get a lot easier to trade when they get so cheap and beaten down.

Um, and Carvana just had a really nice setup I'm except excited to hopefully see more of those. I mean I think Lucid might be another one Now it's still kind of at Lowe's but as long as this company doesn't go bankrupt, it's still holding up. I'm waiting to see another high or low. I'd like to see a perk out of like this seven dollar area again.

I Understand that it's not. You know Carvana and Lucid and everything. They're not directly tied to something like Tesla but when you have a car manufacturer today, that's Innovative and really more of a technology company than it is a car company, you know I know Bowen's been bullish on Tesla for so long. This is why because they move like small caps in their own way when they get moving.

So I'm excited to see a lot of these, even if we don't get a lot of small cap runners in the near future here. But a lot of this is going to just determine uh, or be determined by this. Wednesday So I would say you know, keep an eye out for a lot of these large capsules, especially the ones that got so beat down the Carvanas, the Lucids. The I mean even like Shopify I know those are like way bigger and they've already bounced quite a bit, but we always think of the bigger stocks as kind of more of a leading indicator for what we're seeing here.

and the fact that Tesla has bounced almost 200 percent in a couple months shows that there's a lot of range for large caps. Now let's take a step back and go back into small caps for a second. Here, let's go back into what has been moving. As I said last time, a lot of these cheap stocks, the sub dollar stocks have been moving I'm not a big fan of trading those necessarily, but they have presented amazing opportunities.

We saw it on ah the other day. um I mean this was already gapped up like near 100 when it got up near opened up near 60 cents and then by the end of the day it runs over three dollars. Today it's holding up and it did dip. it broke low a day it broke everything.

I had a couple nice little scalps on it this morning. Day twos are tough. Um, but I'm really liking to see this to see the trapping action that we're seeing here. You got to remember right, previous support and resistance really do matter And we're looking at this intraday.

and I see that two? Basically 220 was a very key level here when we had our halt Downs our bounce halt down about and that was more or less kind of our previous resistance level from earlier in the day. This is very clearly a key level here in the low twos and we held that so we did break all low of days. Today we broke uh, previous low a day which was right at the open at like 250. We broke this previous uh, support here at 260.

and now we're bouncing back above it. So we're trapping intraday but still holding multi-day levels. That gives me a lot of hope that we're gonna start seeing some really good small cap action too, or at least continued action on ones like Ahi We're seeing it today once again on AUD I'm early in the day but this is another one of those cheap stocks that was once under a dollar that is bouncing really well and it's nice midday bounce and I mean this is what I really love to see. We get the really clean view up consolidation right right under view op It's one of those gappers that Fades off break slow day looks like it's just fading away then middle of the day out of nowhere.

it just kind of recovers. We get that perk back up. We break High a day right from low a day without really doing much else and then it cleanly consolidates. We break out.

We're getting momentum into the end of the day we're getting momentum into later in the day, which is very different than what. I in my opinion, what we were seeing last week, you would get those basically like the ahis. you'd get this Spike up and then just fade off and do nothing else the rest of the day. That's what it seems like the Market's been a lot of in the small cap space.

The fact that Ahi held up so well, the fact that Auud is holding up so well, give me a lot of hope that we are going to be able to get some really nice Market opportunities here in the small cap space. So definitely keep an eye on these cheap ones that don't necessarily fade off too far and maybe even recover back in the afternoon. It looks like we're seeing some end-to-day momentum again. I'm going to be keeping an eye on Ahi going to the end of the day today.

Two: they're going yeah, into the end of today. Um, to kind of see where we're at because this would be a preferred one, right? We're already holding up well above yesterday's levels. There should be shorts. Let's say yesterday as in Friday there should be shorts still stuck from Friday those did not get out over the weekend.

Maybe those who added into this push whatever the case may be the longer we hold up and the sooner we do it, the better. So if we can get a really nice push on Ahi I'll be fully ready to go for tomorrow at the very least until Wednesday until we see a little bit more. Another mover from today assst holding up pretty decently right now it's up over 100 percent. Um, but you know, not really doing much.

but with Auud and Ahi momentum, we're coming up on a pretty key Trend break here. This could be a really nice spot in and of itself where we're seeing the same thing. We just see continuous low-day breaks, low day breaks. now.

middle of the day. here we are pushing up into V-lop if we can get some view. Op Consolidation A SST is a very low float. We're seeing that momentum I'll basically gauge going into the end of the day.

Today is asst setting up for potential Power Hour move. Maybe even before that. Um, keep an eye on these stocks that are you know, gapping up really cheap and holding their levels. We kind of talked about that a little bit last week.

Um, with some of these stocks that are perking up and holding above previous uh, you know, maybe even a month ago. two months ago, high volume days of former resistance that are now holding in support, we're looking at a very similar thing here with a lot of these intraday movers which again are just more signs of potential. uh I guess heat in the market, but that's really all I have in terms of charting for today. a lot more of it, like I said is going to just be determined by what happens this.

Wednesday Now I'm not saying that guaranteed. If They raise rates that it's a guaranteed cooldown of the market, but it's more likely than not they didn't raise rates and they just kind of kept them the same. We may get a continuation we get, may get more follow through. There's a lot of speculation as to what could happen and we just really don't have any clear answers until Wednesday And that's why I Want to put this out.

Now, if we don't raise rates, the market does stay hot guys. We may be in for a few fun weeks in the small cap. Market Because we're seeing it with Ahi we're seeing it with a SST we're seeing it with a Uud. We've been seeing the signs come together for a few weeks now and I think we just have a couple days to determine what that's actually going to lead to Anyways, that's my thought and that's the question I leave you with will Fomc, will the uh, you know, will interest rates break our bull market or will the lack of change continue it and we get get a nice couple months of Summer We'll see.

Let me know down in the comments below what you think might happen if we raise rates or if we don't and let me know I Guess if you just want to take a fun guess and speculate with me, will they do it or not I think they probably raise rates again. that's my bet. The Market's hot and you know, smart Traders sell into pops. That's basically what this is.

That'd be my take on it, but again, that's a complete guess. We'll see on. Wednesday Let me know down in the comments below: make sure you drop this video a like make sure you've got the post notifications turned on and make sure you're subscribed to the channel for all future videos. Thank you guys so much for watching! I'll see you back here next week and I Hope you guys have a great trading week this week! Happy June Take it easy everyone thank you I Hope you guys enjoyed this video and thank you so much for being a part of the Stocks of Trade family.

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