Lucas Downey

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.

Until recently, major indices were breaking higher day after day. But plenty of outflows have been noted recently. I suggested two weeks ago you should be on the lookout for a potential healthy Summertime pullback. Our data signals less market participation and if this trend continues, get ready to buy the dip, advises Lucas Downey, co-founder of MoneyFlows.