This is always how big sell-offs happen at Wall Street: at first you start seeing people selling in the small-caps, then it’s the mid-caps and finally large-caps; this is exactly what is happening
(original publishing date: 10/01/14)
It’s not easy to see history when you’re living it, but let us make a call: we’re about to see a very important downward correction at Wall Street, probably the most important we have seen since 2008.
Everything will make sense soon to all of you, for now just focus on this graph:
Mid-caps are following small-caps.
Where are we going ? Well, the day the Fed will officially end the QE (just give it a few weeks) the sell-off may pass from mid-caps to large-caps.
As we always tell you: be ready.