This week we’ve seen an interesting shift in our US rankings.
Micro Caps ($IWC) have climbed to the top of the list after several strong weeks.
What stands out is how the ratios between different market cap sizes are evolving. Micro caps seem to have regained short-term momentum, reversing a recent breakdown relative to large caps.
It’s not just micro caps showing strength.
Several of the ratios we track point to the possibility of small caps beginning a short-term stretch of outperformance, especially as market leadership broadens and the major indices push to new highs.
In this environment, staying in sync with shifting market leaders makes sense.