Risk Appetite Faces a Key Retest 🌤️ The Morning Print
Good morning!
The riskiest stocks in the market are retesting their prior cycle highs.
How they respond here will be telling.
Let's take a closer look.
It took years for small and micro caps to recover from their massive drawdowns.
At one point, many argued the bull market couldn’t end without these groups breaking out.
They’ve since cleared their former highs and have now returned to the scene of the crime for a classic retest.
These are some of the most speculative stocks in the market given their tiny market caps and the fact that many remain unprofitable.
If they can hold these prior highs, that’s a point on the board for the bulls.
And if they fail, it’s a big score for the bears.
What the market’s junkiest stocks do here will offer valuable insight.
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