Pro: Small-Cap Stocks Are On Fire, But Don't Hold For The Long Term
Small-cap stocks are off to their best start since 1987, with the iShares Russell 2000 Index IWM 1.04% up already 8 percent in 2019, said CNBC "Trading Nation" host Mike Santoli. Does this mean investors should be adding exposure to the small-cap group? These two pros debate.
IWM's RSI Indicator leaves overbought zone
The 10-day RSI Oscillator for IWM moved out of overbought territory on October 07, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 instances where the indicator moved out of the overbought zone. In of the 36 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where IWM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on October 17, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on IWM as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for IWM turned negative on October 16, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IWM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IWM advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
IWM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 285 cases where IWM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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