Piper Sandler: Rotation strategy is timely, small and mid-cap stocks in US market volatility present a buying opportunity.

Piper Sandler Chief Market Technician Craig W. Johnson said that although the US stock market overall has had significant volatility, the major stock indices are still in an upward trend and investors should continue to see buying opportunities in "low market cap stocks, particularly value stocks". In a report, Craig W. Johnson stated: "Despite increased overall volatility surrounding earnings, inflation, and tariff concerns, we do not believe now is the time for investors to retreat. Instead, now is the time for rotation." The Russell 2000 index, which is predominantly made up of small-cap stocks, has risen 2.9% over the past month, with approximately 2.4% of the gains occurring in the last five days. Craig W. Johnson stated that the index pulled back from resistance levels near the 50-day moving average and the relative strength index (RSI) has "pulled back to the midpoint, adding positions on a confirmation of a breakout". It is known that when the RSI value exceeds 70, it indicates an overbought market that may face a pullback; when the RSI value is below 30, it indicates an oversold market that may see a rebound. Below is a list of some stocks that were deemed overbought and oversold as of Tuesday.