Hey, Ross here:
While the headlines continue to be predictably focused on the Iran war and oil prices…
There’s one ignored corner of the market that looks ready to bounce.
Take a look below.
Chart of the Day
The top part of this chart is the small-cap Russell 2000.
The bottom part is the level of short interest, i.e. the volume of shorts being taken out against the index.
There are two important things to note here.
First is the price action in the Russell 2000 index itself.
The index broke out of a long-term base then fell back down and retested the breakout level – which appears to be holding.
That’s constructive price action.
At the same time, we can see the second thing to note – how short interest has surged to the highest levels since April 2025.
That’s a classic setup for a short squeeze.
And we all know what happened to the index after April last year – a 50% surge in six months.
Will we see another similar surge this time around?
And how should we play it?
I elaborate on that below.
Insight of the Day
Just like how certain stocks breakout before the broader market does, certain stocks bottom before the broader market
Small-cap stocks as a whole tend to be underperformers and it’s easy to see why…
The “best” small-cap stocks will automatically grow out of the index.
So as a whole, what you’re left with are stocks that are either just starting out, or for one reason or another, can’t seem to break past to that next level.
That’s why when it comes to your long-term retirement accounts, it’s much better to hold a large-cap ETF like the S&P 500 instead of the Russell 2000.
Of course, I’m not suggesting we avoid small-cap stocks altogether.
In fact, I LOVE small-cap stocks for trading. But only individual stocks.
When it comes to small-cap stocks, the only way to go is to be a stock picker.
So even though the entire small-cap index looks poised to surge, we want to pick our shots carefully.
We want to look for stocks set to rebound…
And the best way to do that is to follow the insiders – the high-level execs like CEOs, CFOs, and Directors who tend to snap up their own company stock ahead of pivotal events like FDA approvals or big contract wins.
That’s why in just a few hours at 11 a.m. Eastern later this morning…
I’m going LIVE to walk you through my entire strategy for following these insiders.
I’ll show you where to track down these trades before the media catches on…
The common “insider traps” traders fall for…
And the 3 counterintuitive insider buying signals I’ve been using for years.
The walkthrough is free, but seats are limited..
So click here to confirm your spot if you haven’t already…
And I’ll see you in just a bit at 11 a.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
“Fantastic! Doing well investing with Traders Agency and Ross Givens.
Best decision I have made on this investing journey. Thanks.”
Thanks, Ross and Traders Agency!”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
