A general downturn in small capitalization stocks was posted last Monday, April 21st, 2009. In addition to smaller, regional banks crude oil prices, metals such as copper, and energy, and materials stocks all helped contribute to the reversal of what had been a six-week steady improvement in stock market results.
The Russell 2000, which is the index of small-capitalization stocks, posted a loss of 26.88 points, which is 5.61%, falling to a value of 240.85.
Improving consistently for the past 6 weeks, the Russell increased value by over 30% since its low at the beginning of March.
Credit markets have not been improving, even with the posted gains in small caps. Corporations just don’t seem to be signaling positive signs.
“Because these earnings haven’t been as bad as feared, it’s just provided an opportunity to put on more shorts. It’s just another head fake,” said Harry Rady of Rady Asset Management.
See the full article here:US Small Caps Close Lower On Slide For Regional Banks