Yahoo Finance

Returns can get a bit dicey for the stock market from February into mid-March, especially in a presidential election year. Yet Monday saw a massive reversal in relative strength, one that could be described as "Revenge of the Small Caps." That also can be said about the past three trading days. The Russell 2000 (IWM) rose 1.8% on Monday and has popped 5% in the past three days. The iShares Micro-Cap ETF (EWC) gained 2.8% yesterday and has surged over 6% in the past three days. The IWM is quickly approaching a key technical level at 205, which was the recent high in late December as well as the key breakdown level from January 2022.

Stock indices are at all-time highs, while the overall tone in current and recent sell/buy ratios from Vickers Stock Research remains one of clear caution. Indeed, at 5.47, Vickers' Total One-Week Sell/Buy ratio, which measures activity across the NYSE, Nasdaq, and American Stock Exchange, is at its highest level since July 2023, shortly before the market experienced a 10% pullback in stock prices that extended until late October 2023. With readings above 2.50 signifying bearish sentiment, the Total One-Week ratio has now been in bearish territory since late November, fueling a rise in the Total Eight-Week Sell/Buy ratio to its current reading of 4.51. These cautious readings align with other developing concerns, such as overbought momentum, overbought breadth, and market sentiment that is exceedingly hot. Stocks have performed nicely so far in 2024, but insiders, with a recent uptick in pre-planned sales and decrease in buying, still seem to be building a defensive case.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

New Oriental is a leading private education provider in China. K-9 academic after-school tutoring used to account for 50%-60% of New Oriental’s revenue before the regulatory crackdown in 2021. After terminating its K-9 academic after-school tutoring business, New Oriental has identified a few new initiatives such as nonacademic tutoring and intelligent learning systems and devices. The remaining businesses include high school academic after-school tutoring and overseas-related test preparation and consulting business. It also owns 55% of East Buy (HKG: 01797), a market leader in livestreaming e-commerce.