We're officially in crazy town, and as expected, now we are seeing sentiment change.

The current global economic situation is setting up what I consider to be the trade of the decade. Simply put, this trade is to short U.S. Treasury bonds. This is almost a no-brainer.

It's a stock picker's market, which means you shouldn't just buy an index or a broad based mutual fund right now and hope for the best. 

What should long-term investors do during a period like this where trading ranges, not an extended trend, dominates? I suggest using inverse and leveraged ETFs.

Read any basic investment book and it will tell you that small-cap stocks are riskier than large-cap stocks. On an individual basis, that may be true.

However, if you do your homework and dig deep into the financials of small-cap stocks, you can reduce risk and increase reward dramatically.

For the record, small cap analyst Tyler Laundon points out that small caps tend to outperform large caps over the long-term. He believes that many investors mistake small cap 'risk' for what is actually short-term price volatility...

The market rose modestly yesterday. Volume was average and the bulls were able to fend off the strong selling pressure from earlier in the weak. But the indices finished far off the session highs, which shows us the bears are out there.

The indices overseas were mostly lower today, although Europe got a slight pop after JPMorgan (NYSE: JPM) second quarter earnings were announced this morning. JPM stock was also up 3% following that news. The mega U.S. bank once again beat estimates and grew profits. JPMorgan reported $5.4 billion in income or $1.27 per share in the second quarter. That compares with earnings of $1.09 one year ago.

The market continued its decline yesterday, although the momentum waned. Despite hitting new lows the indices bounced nicely into the close and protected their March low. Volume was also high

The market, and the bulls, lost a sizable amount of ground yesterday. On high volume the indices were devastated and no particular sector held up well. Energy and financials were crushed, and both

The market finally rallied yesterday. The past six weeks have been a slow push lower, but yesterday the bulls finally decided to come back into the market.  Volume levels were alright during the

The market was hacked again on Friday as volume swelled and stocks deflated. The decline concluded a week full of declines in the market. In fact, it also marked the sixth straight week of downward

The market was hit hard again yesterday. Volume raced higher as all major indices plunged at the open. Perhaps the worst (and most telling) aspect of the decline is that it occurred on no news.  News

The market slowly went higher yesterday, but the move was hardly bullish. Volume ran low as SPX moved up towards 1332 resistance. Technology bounced back with Microsoft (Nasdaq: MSFT) leading the way.

The market broke its winless streak yesterday as most major indices closed higher for the session. Volume was about the same as Tuesday’s level and the indices continued to consolidate near the 50

The market declined once again yesterday. While the total damage was miniscule, it was the third straight day of declines. Volume picked up a little as the SPX consolidated around its 50 day moving

The market bears were at it again yesterday. All indices, both domestic and abroad, collapsed. The decline was on low volume, but it was painful. No sector outside of healthcare was able to escape the

The market failed to accomplish anything last week. Volume was low, price movement was miniscule and SPX closed exactly at 1332 support. Meanwhile 1350, which is a long term resistance area we have

The market gradually climbed higher yesterday but with no real show of enthusiasm. Volume was also low and most indices were up less than one percent. Despite the rather bland session the market did

The market ripped higher yesterday led by tech and energy stocks. Volume was unimpressive during the rally that occurred amid no significant news. But no matter what reason the market had for going

The market declined yesterday, but only technology showed clear weakness. The fall from the other indices was a byproduct of the decline in tech stocks. Despite the big drop in technology, and the

The market activity was fairly tame last week. Volume was decent, but price movement was nonexistent. In fact, SPX stayed perfectly within its break out borders of 1355 and 1332. But this week should

The market attempted to rally to fresh highs yesterday but failed. I entered the week saying, “This week the SPX should have strong support at 1332 and 1301. A break below 1301, especially early

The market ripped higher yesterday. Volume was average during the ascent which was led again by commodities and technology. The gain from the technology sector was especially good to see yesterday.

The market recovered modestly yesterday, on extremely low volume. The increase was assisted by commodity stocks, the most notable of which were oil stocks. But technology and small caps made strong

The market declined last week, which is it's first decline of over 1% in some time. Volume picked up, but not in a significant manor. The turn in the market happened to coincide with a turn in the

The market actually closed lower again yesterday. At this rate, the market may even close down for the week, which is an uncommon event. Volume also picked up yesterday, which given the weak close,

The market actually closed lower again yesterday. Although neither volume nor the percent of decline was substantial, SPX has struggled mightily against 1377 resistance. Additionally, which I also

The market climbed higher at the open yesterday, but indices could not hold that gain by the end of the day. Monday's session was actually more bearish than it looked as small caps and energy stocks

The market zoomed to new annual highs last week. Volume was sporadic, but mostly better on a daily basis last week than it has been for some time. Small cap stocks continued to lead the market higher,

The market activity was rather mundane on Thursday, but the indices did build on the gain from earlier in the week. Most indices now trade at the highs of this month and above the February highs,

The market blasted higher yesterday and took out 1335 resistance. Volume levels were also high for most of the session, which is a great change of pace from Monday when volume was incredibly low.

The market action was mild yesterday. The indices were negative for most of the day, but in the final hour most managed to either close with a small gain or back to even. Volume was pitifully low as

The market jacked higher yesterday. The indices were boosted by superb earnings results, mostly technology earnings from stalwarts like Intel (Nasdaq: INTC) IBM (NYSE: IBM) and VMware (Nasdaq: VMW)

The market sank barely less than 1% in a choppy environment last week. Volume was also surprisingly low considering it was both options expiration week and the start of earnings season. Although

The market was flat yesterday. But that is a semi accomplishment since the indices opened sharply lower. Volume trickled off again, and yesterday turned out to be the lowest volume day all week, in

The market rallied, rather unconvincingly, after JPMorgan (NYSE: JPM) blew away analyst estimates. As noted in the morning alert on Wednesday, JPM reported 70% EPS growth, but noted a decline to

The market reversed early gains yesterday morning to close mostly lower. Volume was fairly light except in the Nasdaq, which had heavier volume as a result of a technology sector downgrade. SPX made

The market moved painfully sideways last week. Volume was dismal and the news was dreadfully boring. But the week ended on a positive note. The market rallied off its lows on Friday to get back to

The market continued its sideways move yesterday and banged-up against 1335 resistance for most of the session. Over the past five sessions the market has been stuck in a small range and trading on

The market continued its sideways move yesterday and banged-up against 1335 resistance for most of the session. Over the past four sessions the market has been stuck in a four point range and trading

The market continued its sideways move yesterday and banged-up against 1335 resistance for most of the afternoon. Over the past three sessions the market has been stuck in a four point range and

The market experienced a fairly low activity day yesterday. And I expect lackadaisical action in the market for the next couple of days. Not only was the price movement minute, but the volume

The market once again ran higher last week and the bulls made another step towards new highs. Buyers were able to push the indices towards the final areas resistance protecting the previous rally

The market exploded higher yesterday. Nothing can stop the bulls, it's almost like North Africa, Japan and the Middle East does not exist.  Of course, we know better. And we also know that earnings

The market eventually closed negative Monday as the indices settled lower in late day activity. All indices had been higher throughout the morning, but gradually slipped negative in the final hour of

The market turned lower yesterday, then for absolutely no reason, other than unabashed optimism from the bulls, the market jacked higher and erased all losses. Yesterday's swift turnaround is a

The market continued lower yesterday as resistance levels across the board held. Volume was once again lower as market participates try to decide which direction the indices want to push. Curiously

The market blasted higher out of the gate yesterday. Although it moved (painfully) sideways with almost no activity for the rest of the session. The rally was mainly bolstered by energy and industrial