This is the best time of the year for stocks. And stocks are doing very well, states JC Parets of

In other words, perfectly normal market behavior. This is exactly when Small-caps historically start to outperform their large-cap counterparts. And sure enough, that's exactly what we're seeing. Here's a great chart from Jeff Hirsch and Jay Kaeppel showing these seasonal tendencies:


It’s funny to me that so many people out there think they're experts in market breadth. Over the past few weeks, they’ve been telling me every day how small-cap underperformance is going to drag the rest of the market lower. “It’s only seven stocks JC”. All they had to do was go back and count. But they were too busy being angry to bother to even look.

Fortunately, around here we take the time to do the work. And it’s paying us very well. I think a good lesson here is to take the time to count how many stocks are going up and how many are going down. And if you don’t have time to do it, or don’t want to do it, at least find someone who does and get their notes.

To learn more about JC Parets, please visit