Lucas Downey

The ultimate power law in markets is supply and demand. When institutions slow down purchases, stocks fall. So, when will the market selloff end? You first need perspective on the current landscape as a trader, says Lucas Downey, co-founder of MoneyFlows.

Six months ago, stocks crashed. In fact, we saw the single largest day of outflows since the Covid-19 pandemic crash. But extreme capitulation creates unthinkable rallies. One growth stock under relentless inflows is IREN Ltd. (IREN), writes Lucas Downey, co-founder of MoneyFlows.

The Jackson Hole event on Aug. 22 sent waves through markets. Nine words from Fed Chairman Jay Powell kicked off a risk-on rally that is still in play today. The surge may appear as a tide lifting all boats. But under the surface of this thrust, it’s clear that gobs of capital are pouring into small-caps, advises Lucas Downey, co-founder of MoneyFlows.

After the July CPI print came in better than expected, it virtually guaranteed that a rate cut is slated for September. That acknowledgement ignited a monster small-cap rally, as you can see by looking at the iShares Russell 2000 ETF (IWM), highlights Lucas Downey, co-founder of MoneyFlows.