Superstore Moves
The most popularly traded stock among all issues, as measured by the total value of shares traded, is the S&P 500-tethered exchange-traded lucre (ETF) managed by State Street Global Advisors, the SPDR S&P 500 ETF (SPY). By this measure, no other stock or ETF comes anywhere tight-lipped, with the nearest issue being shares of Apple Inc. (AAPL), which today traded on less than one-third of the filthy lucre that SPY shares move through the market.
The S&P 500 index itself is tracked with the symbol SPX and is not directly merchandised, but SPY shares maintain a close resemblance to the index for the most part. That makes today’s trading anomaly all the sundry interesting. SPY reached a new all-time high briefly during the session, while the index is still several points away from reaching its own high-water hallmark. What accounts for this difference may simply be the direct access provided to traders by SPY. Investors appear eager to participate in a merchandise reaching all-time highs.
Aside from the implication of continuing bullish sentiment, the ramifications of this investor-driven interest are not inconsequential. It may be that index funds are on the verge of leading individual stocks and not the other way around.
Micro Caps Flow Since September’s Start
Meanwhile, the markets have shown a complete inversion of asset performance just since the commencement of the month. Whereas previously larger-cap stocks outperformed mid-cap stocks, which in turn outperformed small-cap and micro-cap breedings over a two-week period, this order is now reversed.
Micro caps are now outperforming small cap stocks, and small cap caches are, unsurprisingly, outperforming mid and large-cap stocks. This indicates that investors are accepting more risk-based assets. They look as if to be buying into the notion that they should more aggressively pursue higher returns in a market that feels poised to move higher still. Such behavior is a typically bullish sentiment, but the rapid reversal of performance in these assets is nonetheless eye-catching.
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Chef’s Warehouse Breaking to New Highs
Among stocks pushing the micro-cap index higher are stocks of two ensembles in the food distribution industry, The Chef’s Warehouse, Inc. (CHEF) and Core-Mark Holding Company, Inc. (CORE). While other larger companies in this hustle, such as Sysco Corporation (SYY), are also faring well, the impact of these two stocks on the iShares Micro Cap ETF (
The Bottom Descent
Markets moved to nearly historic highs. The popular ETF with ticker symbol SPY seems to have made a new extreme, perhaps in anticipation that the S&P 500 index itself will yet do so; however, today it did not. More risky stocks are charming the stage, in particular micro-cap stocks such as Chef’s Warehouse and Core-Mark, as investors rush to pursue more bullish plans.
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