• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Stay Away From Large Cap Value Stocks
Stock

Stay Away From Large Cap Value Stocks

by December 6, 2024
by December 6, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Growth vs Value Rotation, the pendulum swings again

Relative Rotation Graphs (RRG) are not only good for visualizing sector rotation, but they are also valuable tools for visualizing other market dynamics. For example, the relationships between Growth and Value stocks or Large-cap vs. mid- and Small-cap stocks and the combination of these two breakdowns of the market.

The pure growth-value rotation, as shown in the RRG above, RRG tells an interesting story.

Value had its moment in the sun from August to early October, but the tides have turned since then.

Around the week ending Sept 27, the value tail started to roll over while still inside the improving quadrant and the growth tail did the opposite inside the weakening quadrant. Basically signaling the end of a temporary countertrend move.

Now, it’s clear that growth is once again beating value.

Size Matters: Small and Mid-Caps Take Center Stage

When we add the RRG showing rotations of large, mid, and small-cap stocks, the picture becomes even clearer.

Small and mid-cap stocks are still gaining relative strength in the leading quadrant.

Meanwhile, large caps are languishing in the lagging quadrant, continuing to lose ground.

A More Granular Look: Where the Action Is

Now, let’s get into the nitty-gritty. We get a more nuanced view by combining the breakdown of the US stock universe into growth and value with large, mid, and small caps.

The resulting RRG with six tails, three for growth and three for value broken down into three size segments, paints a vivid picture:

Mid and small-cap growth stocks are the clear leaders, deep in the leading quadrant and heading further into it.

Value small-cap and mid-cap stocks on the right side of the graph are holding their own, although they are losing some relative momentum.

Both the large-cap tails inside the lagging quadrant show this segment’s current weakness. Still large cap growth has just started to curl back up a bit while large cap value continues to head South-West.

This means that large-cap value is now the weakest segment in the market. Inside the lagging quadrant and traveling on a negative RRG-Heading.

What This Means for Investors

Large-caps in general, particularly large-cap value, are best avoided for now.Small-cap and mid-cap growth stocks deserve your attention — they’re where the action is.

Market Outlook: Steady as She Goes

Despite these rotations, the overall outlook for the stock market in the coming weeks remains healthy.

The S&P 500 chart shows the rhythm of higher and lower lows is intact. Divergences causing concern have been negated, and breadth metrics have normalized—they’re no longer sending too many negative signals.

#StayAlert and have a great weekend. –Julius

You Might Also Like
  • Visualizing the Market Factors Panel on RRG
  • Down-and-Out Stocks Entering New Uptrends – These 8 Traits Will Help You Pick a Winner
  • The SCTR Report: Dell Is Gaining Strength. Here’s Why the Stock Is a Strong Buy.
  • Lululemon Stock: Try This Simple Analysis Before You Buy
Share
0
FacebookTwitterPinterestWhatsapp

previous post
What’s The Outlook For December AND For 2025?
next post
The Most Important Chart to Watch Into Year-End 2024

You may also like

The Bull Case for Commodities

September 12, 2023

The Best Five Sectors (1)

January 3, 2025

Deciphering Gold’s (GLD) Signals: Is Now the Time to Go...

February 2, 2024

Key Breadth Indicator Flashes Buy Signal for Nasdaq 100

May 3, 2024

Check Out This Economic Indicator

April 21, 2023

How Market Breadth Indicators Can Lead You Out of Market...

October 4, 2023

Large-Cap Growth Threatens the S&P Rally

June 25, 2024

Market Rips Higher After Fed Announcement

March 20, 2024

Here’s What the Markets are Telling Us – And It’s...

March 18, 2023

Two Consumer Stocks Popping to New Swing Highs!

June 27, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,631 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The Halftime Show: Momentum on Our...

    July 6, 2023

    Bearish Engulfing Patterns Forming on NVDA...

    June 21, 2024

    Who will Win the Battle for...

    November 4, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here