{"id":65329,"date":"2025-10-02T02:00:16","date_gmt":"2025-10-02T07:00:16","guid":{"rendered":"https:\/\/www.tradestation.com\/insights\/?p=65329"},"modified":"2025-10-02T08:25:05","modified_gmt":"2025-10-02T13:25:05","slug":"market-trends-october-2","status":"publish","type":"post","link":"https:\/\/www.tradestation.com\/insights\/2025\/10\/02\/market-trends-october-2\/","title":{"rendered":"Small Caps vs Emerging Markets"},"content":{"rendered":"<p>Downloads are available\u00a0<a href=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/MT-Public-Materials-October-2025.zip\">here<\/a>. TradeStation\u2019s ideas on TradingView are\u00a0<a href=\"https:\/\/www.tradingview.com\/broker\/TradeStation\/ideas\/\">available here<\/a>.<\/p>\n<p>Next presentation: State of the Market on Monday, 10\/6. (See <a href=\"https:\/\/www.tradestation.com\/learn\/events-list\/\" target=\"_blank\" rel=\"noopener\">Events page<\/a>\u00a0for more.)<\/p>\n<h2 class=\"wp-block-heading\">Sizing Up the Market<\/h2>\n<ul>\n<li>S&amp;P 500 rallies off 6,550, 8-day EMA<\/li>\n<li>Wilder&#8217;s Relative Strength Index (RSI) stays above 50<\/li>\n<li>9-day rate of change (ROC) stays positive<\/li>\n<li>Pharma rally provides surprise boost<\/li>\n<\/ul>\n<div id=\"attachment_65337\" style=\"width: 1930px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-65337\" class=\"size-full wp-image-65337\" src=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/SPX_20251001.jpg\" alt=\"\" width=\"1920\" height=\"918\" srcset=\"https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/SPX_20251001.jpg 1920w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/SPX_20251001-300x143.jpg 300w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/SPX_20251001-1024x490.jpg 1024w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/SPX_20251001-768x367.jpg 768w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/SPX_20251001-1536x734.jpg 1536w, https:\/\/cdn.tradestation.com\/uploads\/sites\/2\/SPX_20251001-1080x516.jpg 1080w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><p id=\"caption-attachment-65337\" class=\"wp-caption-text\"><em>S&amp;P 500, daily chart, with select patterns and indicators.<\/em><\/p><\/div>\n<h2>Small Caps vs. Emerging Markets<\/h2>\n<ul>\n<li>U.S. Dollar Index on pace for worst year since 2007 (-10%)<\/li>\n<li>OECD:\u00a0World GDP (+3.2%) seen outpacing U.S. (+1.8%) next year<\/li>\n<li>See &#8220;<strong><em>20251002 EEM vs IWM.tsw<\/em><\/strong>&#8221; in new zip file above.<\/li>\n<li>See table below for key metrics<\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; width: 100%; height: 96px;\">\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%;\"><\/td>\n<td style=\"width: 25%; height: 24px;\"><span style=\"text-decoration: underline;\"><strong>IWM<\/strong><\/span><\/td>\n<td style=\"width: 50%; height: 24px;\"><span style=\"text-decoration: underline;\"><strong>EEM<\/strong><\/span><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%;\">P\/E ratio<\/td>\n<td style=\"width: 25%; height: 24px;\">11x<\/td>\n<td style=\"width: 50%; height: 24px;\">11x<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%;\">Dividend Yield<\/td>\n<td style=\"width: 25%; height: 24px;\">1.3%<\/td>\n<td style=\"width: 50%; height: 24px;\">2.2%<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%;\">Largest Holding<\/td>\n<td style=\"width: 25%; height: 24px;\">CRDO ($25B)<\/td>\n<td style=\"width: 50%; height: 24px;\">TSM ($1.1T)<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 25%;\">YTD %<\/td>\n<td style=\"width: 25%;\">+9.7%<\/td>\n<td style=\"width: 50%;\">+29%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 25%;\"><em>Source: ETFDB.com<\/em><\/td>\n<td style=\"width: 25%;\"><\/td>\n<td style=\"width: 50%;\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Upcoming Events<\/h2>\n<ul>\n<li>Fri 10\/3: Payrolls<\/li>\n<li>Wed 10\/8: 10-year Treasury auction, FOMC minutes<\/li>\n<li>Thu 10\/9: Jobless claims\n<ul>\n<li>Earnings: DAL | PEP<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"et_pb_section et_pb_section_4_tb_body article-content et_section_regular\">\n<div class=\"et_pb_row et_pb_row_4_tb_body\">\n<div class=\"et_pb_column et_pb_column_4_4 et_pb_column_9_tb_body et_pb_css_mix_blend_mode_passthrough et-last-child\">\n<div class=\"et_pb_module et_pb_post_content et_pb_post_content_0_tb_body\">\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<table style=\"width: 58.3086%; height: 144px;\" border=\"1\">\n<caption><strong>Standardized Performances for ETFs mentioned above<\/strong><\/caption>\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"height: 24px; width: 57.5962%;\"><strong>ETF<\/strong><\/td>\n<td style=\"height: 24px; width: 12.3425%;\"><strong>1 Year<\/strong><\/td>\n<td style=\"height: 24px; width: 14.1745%;\"><strong>5 Years<\/strong><\/td>\n<td style=\"height: 24px; width: 14.4726%;\"><strong>10 Years<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"height: 24px; width: 57.5962%;\">iShares MSCI Emerging Market ETF (EEM)<\/td>\n<td style=\"height: 24px; width: 12.3425%;\">+16.44%<\/td>\n<td style=\"height: 24px; width: 14.1745%;\">+21.12%<\/td>\n<td style=\"height: 24px; width: 14.4726%;\">+62.90%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 57.5962%;\">iShares Russell 2000 ETF (IWM)<\/td>\n<td style=\"width: 12.3425%;\">+9.54%<\/td>\n<td style=\"width: 14.1745%;\">+61.53%<\/td>\n<td style=\"width: 14.4726%;\">+121.58%<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"height: 24px; width: 98.5858%;\" colspan=\"4\"><em>As of September 30, 2025. Based on TradeStation data<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em>Exchange Traded Funds (\u201cETFs\u201d) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses.\u00a0<a href=\"https:\/\/www.tradestation.com\/insights\/etf-disclosures\/\">Click here<\/a>\u00a0to find the prospectus.<\/em><\/p>\n<p><em>Performance data shown reflects past performance and is no guarantee of future performance. The information provided is not meant to predict or project the performance of a specific investment or investment strategy and current performance may be lower or higher than the performance data shown. Accordingly, this information should not be relied upon when making an investment decision.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Emerging markets are outpacing U.S. small caps by a wide margin.<\/p>\n","protected":false},"author":39,"featured_media":63321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[1276,13],"tags":[],"class_list":["post-65329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-trends","category-stocks","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Small Caps vs Emerging Markets | Market Insights<\/title>\n<meta name=\"robots\" content=\"index, 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