Piper Sandler: The rotation strategy is timely, and small-cap stocks in the US market present a good buying opportunity amid volatility
Piper Sandler's Chief Market Technician Craig W. Johnson stated that despite the overall volatility in the U.S. stock market, the major indices remain in an upward trend, and investors should continue to look for buying opportunities in "low market cap stocks, especially value stocks." In a report, Craig W. Johnson mentioned, "Despite the increased overall volatility surrounding earnings, inflation, and tariff concerns, we believe now is not the time for investors to retreat. Instead, it is time to rotate." The Russell 2000 index, which is primarily composed of small-cap stocks, has risen 2.9% compared to a month ago, with approximately 2.4% of that increase occurring in the last five days. In this regard, Craig W. Johnson noted that the index has pulled back from the upper resistance level near the 50-day moving average, and its Relative Strength Index (RSI) has "pulled back to the midpoint, increasing positions when confirming a top breakout." It is reported that when the RSI value exceeds 70, it indicates that the market is overbought and may face a correction; when the RSI value falls below 30, it indicates that the market is oversold and may see a rebound. Below is a list of some stocks that are currently in overbought and oversold conditions as of Tuesday
According to the Zhitong Finance APP, Craig W. Johnson, Chief Market Technician at Piper Sandler, stated that despite the overall volatility in the U.S. stock market, the major indices remain in an upward trend, and investors should continue to look for buying opportunities in "small-cap stocks, especially value stocks."
In a report, Craig W. Johnson mentioned, "Despite the overall increase in volatility surrounding earnings, inflation, and tariff concerns, we believe now is not the time for investors to retreat. Instead, it is time to rotate."
The Russell 2000 index, which is primarily composed of small-cap stocks, has risen 2.9% compared to a month ago, with approximately 2.4% of that increase occurring in the last five days. In this regard, Craig W. Johnson noted that the index has pulled back from a resistance level near the 50-day moving average, and its Relative Strength Index (RSI) has "pulled back to the midline, increasing positions when confirming a top breakout."
It is reported that when the RSI value exceeds 70, it indicates that the market is overbought and may face a correction; when the RSI value is below 30, it indicates that the market is oversold and may welcome a rebound.
Here is a list of some stocks that are currently in overbought and oversold conditions as of Tuesday.
