Moonman321
Oct 19, 4:59 AM
$CABA Small caps are getting hit by fears of more rate hikes and high oil prices—but both could turn.
Oil flows through the Strait of Hormuz are already back to around 80% of pre-war levels. If that recovery continues, oil could fall fast. And with the Fed more likely to hold rates than raise them, the pressure on small caps could ease.
The Russell 2000 is nearly 10% below its August high. If oil keeps coming down and rate-hike fears fade, small caps could come roaring back. This setup is about two get explosive.
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