Small-Cap Surge: Has the Election Rally Been Priced In?

Tiger_comments
10-17
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Yesterday, small-cap stocks $iShares Russell 2000 ETF(IWM)$ reached their highest level since November 2021. Meanwhile, rocket and nuclear power stocks surged over 20%.

  • Some say the rally in small-cap and meme stocks signals we're in the late stage of a bull market, with limited upside for large-cap stocks, suggesting a pullback in October.

1. Nuclear stocks soar by 40%! Meme stocks or investing in the future?

Nuclear concept stocks $Oklo Inc.(OKLO)$ , $NuScale Power(SMR)$ , and $NANO Nuclear Energy Inc.(NNE)$ surged nearly 40% yesterday due to the booming AI concept.

In light of the massive energy consumption behind AI computing power, tech giants like Microsoft, Google, and Amazon are actively seeking nuclear energy as a solution for their data centers.

On October 16, $Amazon.com(AMZN)$ announced that it has signed an agreement with $Dominion Resources(D)$ in Virginia to explore the development of small modular reactors (SMRs) near Dominion's existing North Anna Nuclear Power Station.

$Tesla Motors(TSLA)$ has also long been involved in the energy storage business. In the second quarter of 2024, Tesla deployed 9.4 GWh of battery storage products, setting a record for the highest quarterly deployment, with a quarter-over-quarter increase of 129% and a year-over-year increase of 157%, showing impressive growth.

  • Others believe there won’t be a significant pullback until after the November elections.

2. Election rally has been priced in or not?

Analysts at Bank of America noted that the average monthly returns of the $.SPX(.SPX)$ in the fourth year of a presidential term typically show lackluster performance from January to May, a summer rebound from June to August, a pre-election pullback in September and October, followed by a post-election rally in November and December.

However, both September and October are currently seeing market rally.

Is the market pricing in the election rally?

What’s your take?

Will market pullback in October or post election?

Would you invest in nuclear stocks?

Leave your comments and also post to win tiger coins~

Farewell October: Are You Ready for the Best Month?
October has seen significant market volatility. Chinese stocks experienced a continuous rise in early October but stalled after China's National Day holiday. The election trades then undoubtedly became the busiest focus of October, with DJT rising nearly 200% and Bitcoin returning above $70,000. Nvidia hit a new all-time-high, briefly surpassing Apple’s market value as the top company. With so many dazzling gains, have you made money? How do your October portfolio look like? Are you ready for the best month in stock market?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • icycrystal
    10-17
    icycrystal
    during this uncertain times, better to keep to stable, familiar stocks. this way can sleep well at night [smile] [smile] [smile]

    @koolgal @rL @GoodLife99 @HelenJanet @Universe宇宙 @LMSunshine @Shyon @SPACE ROCKET @TigerGPT @Aqa

    Is the market pricing in the election rally?

    What’s your take?

    Will market pullback in October or post election?

    Would you invest in nuclear stocks?

    Leave your comments and also post to win tiger coins~

  • Universe宇宙
    10-17
    Universe宇宙
    @TigerGPT perform technical analysis on this 3 stocks: $Oklo Inc.(OKLO)$ , $NuScale Power(SMR)$ and $NANO Nuclear Energy Inc.(NNE)$ and tell me which one would you buy, buddy.
    • TigerGPT: 

      Based on the analysis, here are the key findings for the three stocks:

      Oklo Inc. (OKLO):  

      Support price: $15.80 (USD)  

      Resistance price: $21.50 (USD)  

      Average cost: $15.33 (USD)  

      Analyst recommendation: 1 buy  

      Analyst target price: The mean target estimate is $39.00 (USD)  

      Capital flow data (5-day): Significant inflow of 10,790.66 units (K)  

      Stock price: $18.90 (USD)  

        NuScale Power (SMR):  

        Support price: $14.38 (USD)  

        Resistance price: $19.08 (USD)  

        Average cost: $14.76 (USD)  

        Analyst recommendation: 5 buy, 2 hold, 1 underperform  

        Analyst target price: The mean target estimate is $12.57 (USD)  

        Capital flow data (5-day): Significant inflow of 16,778.08 units (K)  

        Stock price: $19.15 (USD)  

          NANO Nuclear Energy Inc. (NNE):  

          Support price: $12.35 (USD)  

          Resistance price: $16.55 (USD)  

          Average cost: $13.00 (USD)  

          Analyst recommendation: 2 buy, 2 hold  

          Analyst target price: The mean target estimate is $10.83 (USD)  

          Capital flow data (5-day): Significant inflow of 19,556.39 units (K)  

          Stock price: $15.24 (USD)  

          Considering the analysis and available information, it is important to note that investing in stocks involves inherent risks and stock prices can fluctuate. It is advisable for investors to conduct independent research and analysis before making investment decisions.

          Please note that the above analysis is not a recommendation to buy or sell any stocks. The information provided is for reference purposes only and should not be considered as investment advice.

  • Shyon
    10-17
    Shyon
    It seems like the market is indeed showing some early signs of an election rally, especially with the recent gains in sectors like nuclear energy. The typical patterns noted by Bank of America suggest that we should expect some volatility leading up to the election, but the strong performance of nuclear stocks reflects a broader trend tied to the increasing energy demands of AI.

    I think there's a chance we could see a pullback in October, as historical trends often indicate some caution before the election. However, if the momentum continues, especially with nuclear energy being viewed as a solution for tech giants’ energy needs, we might see sustained interest in those stocks.

    As for investing in nuclear stocks, I’m intrigued by the potential they hold. With the push for sustainable energy sources and the intersection with AI, it seems like a sector that could thrive. I’d definitely consider adding some exposure there, especially if the fundamentals remain strong.
    @Tiger_comments

  • Aqa
    10-17
    Aqa
    The market is very volatile now. Do invest with due diligence. The rally in small-cap and meme stocks might signals we're in the late stage of a bull market. There is now limited upside for large-cap stocks. A pullback may still happen in late October before the election in November. Either that or the market has already priced in the election rally early into the whole of Ictober now. Thanks @Tiger_comments
  • MHh
    10-17
    MHh
    I do believe that the market is pricing in the election rally already. I do expect the pullback to happen before the election as there is uncertainty and different candidates offer different impact on the economy. Investors dislike uncertainty and will exit before the election and re-enter where there is clarity. I won’t invest in nuclear stocks yet until I have greater understanding of the prospects along with the impact that the new president will bring. It is too near to the election for me to feel comfortable entering now.
  • TimothyX
    10-17
    TimothyX
    美國銀行分析師指出，平均月回報率的$.SPX(.SPX)$在總統任期的第四年，1月至5月表現平淡，6月至8月夏季反彈，九月和十月選舉前的回調隨後在11月和12月舉行了選舉後集會。
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