Hey, Ross here:
Welcome back to a new trading week. Hope you had a good weekend.
Let’s start the day by asking a question…
Is it finally time for small-caps to shine?
Chart of the Day
Last Friday, the small-cap Russell 2000 index broke out to new all-time highs.
Of course, the S&P 500 also hit a new high, so this may seem a bit unimpressive.
But take a look at how small-caps have performed since the November 20 market low.
Whether you’re comparing small caps against the S&P 500, the Equal-Weight S&P 500, or even individual S&P 500 sectors themselves…
Small caps have outperformed them all since November 20.
That’s why I’m asking – is it finally time for small-caps to shine?
Now, don’t get me wrong – we’ve been here before.
Over the past 3 years there have been quite a few times where small-caps broke out past their larger cousins…
Only for them to come crashing back down again (at least on a relative basis).
So, while it looks like small-caps may finally be having their day in the sun again…
I wouldn’t make any bets that this is something that could last for years or months.
The good news?
We don’t need this to be the new default condition to take advantage of it.
I explain more below.
Insight of the Day
Targeting the leading groups is not just limited to sectors.
If you’ve been reading this newsletter for a while, then you know my general philosophy is to target the leading groups in the market.
A lot of times, when talking about leading groups, we’re talking about sectors.
But it doesn’t just mean sectors.
In this case, with small-caps breaking out, we have the opportunity to focus on the leading groups within small-caps themselves.
If small caps eventually end up pulling back again – like all the times before?
It doesn’t matter. We would already have gotten in and gotten out with our profits.
That’s the game.
And here’s more good news.
If you look at historical data dating back to 1945…
You’ll find that mid-December to mid-February is the usual time when small-caps tend to outperform.
In other words, we’re par for the course this time around.
The opportunity window is open.
And if you want to step through it…
Then join me tomorrow, Tuesday January 13, at 11 a.m. Eastern…
Because I’ll be hosting a live demo showing you my top strategy for going after these leading names.
Just this month, this strategy spotted a name that rocketed over 20% in just 2 days.
But with small-caps taking the lead – we could just be getting started.
So click here to save your free seat for tomorrow’s live demo…
And I’ll see you Tuesday morning at 11 a.m. ET sharp.
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
“Ross is a minefield of knowledge…
Really enjoying his live sessions – a lot of information to process being new enough to the game.
But I’m enjoying the teaching style as he break things down well and says it how it is – no fluff no messing about.
This man knows his onions recommend 10/10”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
