September Small-Cap Rally Underway

Charts, Commentary, News, Stocks

Prior to Labor Day we noted the tendency of small-cap stocks to outperform large-cap stocks beginning at the end of August and lasting until around mid-September. This small-cap advantage typically begins on or around the 18th trading day in August and lasts until around the 12th trading day in September. On average the Russell 2000 has outperformed the Russell 1000 by 0.7% during this time span with the Russell 2000 outperforming 70% of the time over the last 40 years. As of today’s close Russell 2000 is up 4.5% since the close of August 26 while Russell 1000 is up 3.3%. As a reminder, small-cap outperformance in September usually does not last much beyond the 12th trading day (September 18th, this year). 

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Stock Trader's Almanac (1284 Posts)

Jeffrey A. Hirsch is Editor in Chief of the Stock Trader’s Almanac. His latest book "The Little Book of Stock Market Cycles" (Wiley) was published in August 2012. As a frequent participant in the MrTopStep IM-Pro Trading Room, he shares trading insights with our other professional traders and new traders eager to experience the power of collective intelligence. Join us today and get the edge only social trading can give you.

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