Hey, Ross here:
The S&P 500 and the Nasdaq are now at new highs.
Large-cap stocks are doing good.
Small caps? That’s another story.
Chart of the Day
This is IWM/SPX – the ratio of the small-cap Russell 2000 to the large-cap S&P 500.
The lower the chart, the more small-caps are underperforming large-caps.
And as you can see, for the past four years, small-caps have severely underperformed large caps.
The long-term trend is very clear.
But take a look at what happened yesterday.
Small-cap stocks printed their best day in weeks – and their third-best day this year ever.
Plus, as you can see from the chart above, it looks like it may be on the verge of breaking out of a sideways consolidation period.
Could we be witnessing the start of a small cap resurgence?
I elaborate below.
P.S. In this choppy market, getting left behind could be costly. Text the word “trade” to 87858 and get this newsletter straight to your mobile so you never miss anything.
Insight of the Day
Bet on small-caps – but not a small-cap resurgence.
Based on the chart patterns, there is a decent chance we may see a small-cap breakout.
But considering how news driven this market has been lately…
I wouldn’t be surprised if small-caps keep chopping around sideways – or even fall back to the bottom of the range…
Even as large caps keep moving higher.
So no, considering the clear long-term trend of small cap underperformance versus large caps…
I’m not going to bet on a small-cap resurgence just yet.
BUT…
I’m still going to be betting on (individual) small caps.
Because if the entire small-cap index can make such a big move…
Imagine the kind of moves individual small-caps can make.
That’s what I want to bet on.
That’s why later this afternoon at 3 p.m. Eastern…
I’m going LIVE for a special session to demo a strategy for targeting these huge pops in small-cap stocks.
It’s allowed us to bag gains like:
- 102% in 12 days…
- 118% in 2 days…
- 101% in 5 days…
- 207% in 5 days…
- 519% in just 60 days.
And the best part is…
This strategy allows you to profit from plunges as well as pops…
Which is why it still printed money even during the painful March to April selloff this year.
So whether this bull market keeps ripping higher…
Or the market runs into a wall…
This is the strategy you need to have in your arsenal.
So if you haven’t already…
Click here to guarantee your seat at my live session…
And I’ll see you later this afternoon at 3 p.m. ET.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
Android: https://play.google.com/store/search?q=goto&c=apps
Customer Story of the Day
“I’ve been an extremely happy customer for over a year. I’ve doubled my money and would have made more money had I not ventured off and did my own thing. (a learning experience, but much wiser now).”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
