My answer to this question is Yes..!
It is highly likely that we were experienced the Melt-up in Small caps between March 2020 and February 2021 in the small caps!
The sharpest move (+144% in 12 months) in the past 23 years!
What Is a Melt-Up?
A melt-up is a sustained and often unexpected improvement in the investment performance of an asset or asset class, driven partly by a stampede of investors who don't want to miss out on its rise, rather than by fundamental improvements in the economy.
Gains that a melt-up creates are considered to be unreliable indications of the direction the market is ultimately headed. Melt-ups often precede meltdowns.
What is the Price Rate Of Change (ROC) Indicator
The Price Rate of Change (ROC) is a momentum-based technical indicator that measures the percentage change in price between the current price and the price a certain number of periods ago. The ROC indicator is plotted against zero, with the indicator moving upwards into positive territory if price changes are to the upside, and moving into negative territory if price changes are to the downside.
The indicator can be used to spot divergences, overbought and oversold conditions, and centerline crossovers.
The Price Rate of Change (ROC) oscillator is an unbounded momentum indicator used in the technical analysis set against a zero-level midpoint.
A rising ROC above zero typically confirms an uptrend while a falling ROC below zero indicates a downtrend.
When the price is consolidating, the ROC will hover near zero. In this case, it is important traders watch the overall price trend since the ROC will provide little insight except for confirming the consolidation.
Daily Charts in the past 7 months: Pure sideway!
Weekly Chart:
Monthly Chart:
Conclusion:
If you have small caps in your portfolio, define your emergency exit plan..! It will be needed soon!
Reference Article:
https://www.investopedia.com/terms/m/melt-up.asp
https://www.investopedia.com/terms/p/pricerateofchange.asp
It is highly likely that we were experienced the Melt-up in Small caps between March 2020 and February 2021 in the small caps!
The sharpest move (+144% in 12 months) in the past 23 years!
What Is a Melt-Up?
A melt-up is a sustained and often unexpected improvement in the investment performance of an asset or asset class, driven partly by a stampede of investors who don't want to miss out on its rise, rather than by fundamental improvements in the economy.
Gains that a melt-up creates are considered to be unreliable indications of the direction the market is ultimately headed. Melt-ups often precede meltdowns.
What is the Price Rate Of Change (ROC) Indicator
The Price Rate of Change (ROC) is a momentum-based technical indicator that measures the percentage change in price between the current price and the price a certain number of periods ago. The ROC indicator is plotted against zero, with the indicator moving upwards into positive territory if price changes are to the upside, and moving into negative territory if price changes are to the downside.
The indicator can be used to spot divergences, overbought and oversold conditions, and centerline crossovers.
The Price Rate of Change (ROC) oscillator is an unbounded momentum indicator used in the technical analysis set against a zero-level midpoint.
A rising ROC above zero typically confirms an uptrend while a falling ROC below zero indicates a downtrend.
When the price is consolidating, the ROC will hover near zero. In this case, it is important traders watch the overall price trend since the ROC will provide little insight except for confirming the consolidation.
Daily Charts in the past 7 months: Pure sideway!
Weekly Chart:
Monthly Chart:
Conclusion:
If you have small caps in your portfolio, define your emergency exit plan..! It will be needed soon!
Reference Article:
https://www.investopedia.com/terms/m/melt-up.asp
https://www.investopedia.com/terms/p/pricerateofchange.asp