Small Caps and Micro Caps
Posted by nexvucapital on April 15, 2015
Further to our previous comments…the evidence…as the TSXV makes a run for a 4 month high and potential breakout from the bottom along with a new one-year high for the Russell 2000. The TSXV needs to tackle the old low resistance in the 750-825 range potentially falling back to what should be support at 700 if this takes longer to unfold. A break above 825 in the TSXV will be the beginning of the bull market in the Canadian Micro-caps. This will require out-performance by the Canadian dollar which looks to have bottomed v USD at the historic 10Yr support of $0.80. Firming energy prices (we are a petro-currency) are causing a breakout from the $0.80 range.