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We are entering a seasonally strong time of year for the stock market. This is because this is the period when institutional investors really get down to business with pension funding and other year-end trading events. This seasonal phenomenon creates a spike in volume and very favorable conditions on Wall Street.

What’s more, a very exciting fourth-quarter earnings season is under-way, and companies are poised for some of the most impressive sales and earnings we’ve seen in the past decade. As the recovery takes hold, companies are seeing very favorable year-over-year comparisons.

Small-cap stocks are most favorably influenced by these trends, because smaller companies are more likely to gap up on higher volume and these trim, agile companies are the most likely to ramp up production and sales when things turn around.

To help you cash in on these seasonal trends, here are five top small cap stocks to buy now.

NEXT – Small Cap Stock #1