Large-cap technology stocks have been the talk of the town for a couple of years now.
It’s easy to understand why because they’ve been rising faster than the overall stock market, and they’ve led the pack through the COVID-19 pandemic.
But right now, their momentum levels are troublesome…
And it looks like the Nasdaq 100, an index that tracks 100 of the largest publicly traded companies in the U.S., is breaking below its 50-day moving average.
Folks, this is big news.
For those of you who don’t know, the 50-day moving average tells people the average price investors have paid to get an asset over the past 10 trading weeks.
Most traders use this indicator because it’s the first line of support in an uptrend, or the first line of resistance in a downtrend. And a negative number suggests a stock is trading below its 50-day moving average.
That means it’s time to look at the hidden gem small-cap stocks that haven’t had the opportunity to explode higher like the larger tech stocks — but stand to benefit the most from this shift.
Now, don’t get me wrong…
I’m anticipating upside in all of the major indexes for the foreseeable future. And I don’t believe this is more than just the healthy correction I predicted several months back.
The Russell 2000, which tracks 2,000 small-cap companies, traded two times the S&P 500 over the past quarter. I’m expecting this shift into the hidden gem small-cap stocks to continue for the next few months.
So if you want to see massive returns that could potentially be as much as six times larger than the S&P 500, then I suggest you pay close attention to what I’m saying in today’s daily video.
Remember, this is the age of disruptive tech like artificial intelligence, self-driving cars, robotics and the internet of things.
And the hidden gem small-cap stocks on my radar have one thing in common: lightning-fast internet speed.
Check out today’s video to reveal the two hidden gem small-cap stocks and let me know some of your favorites in the comments section below.
Also don’t forget to subscribe to my YouTube channel if you haven’t already so you can be notified as soon as I post my next video!
P.S. Small-cap stocks have the potential to rally faster than their bigger, blue-chip cousins. And yet many people ignore this sector in favor of companies they’re more familiar with.
Right now, small caps look to be on the verge of a massive breakout. In fact, they’ve already allowed me to capture impressive winners like 118% on PFSI… 153% on DDD… and even 414% on CNE.
The key to making returns like this is learning how to spot small-cap “microbursts” before they happen… and then riding that momentum as the stock climbs higher.
I’ll even show you how I find these little-known microbursts.