Yeah I think we need some more updays for money to start coming into small caps again.
Was a good upnight in US indices yesterday (most up 2-4%), but I think we need to see some more up nights, and consolidation a lot higher to calm the market panic at the moment. Have seen a lot of money pulled out of small caps and volume go down significantly as panic and market uncertainty has crept in.
I thought it was interesting to see that although US markets have dropped significantly this year, we are in a recession depending on your definition, but whats not depending on definition is the US500 started the year trading 4796 and now trading 3698, thats a 23% fall of the index of the top 500 companies in US, but despite this along the way there has been periods of good bounces:
Looking in the past too, seems like these bounces do happen quite a lot in these market crashes:
So although sentiment and markets might be down, there are big rallies that occur, that dont even occur as often when we are in bull markets, which it kind of eye opening, meaning a lot of opportunity in these crashes to trade in and out of.
I think also its good to note that although US markets broke their June/July lows these last few weeks, MGT did not, and made a higher low. So if we do infact start bouncing in US equities (think we need to get back to 3900 levels - see the red circle I put on the first chart- for panic to subside a little) then we hopefully should see MGT making a higher high and cracking 3 .
MGT Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
