Hey, Ross here:
Today’s stock market is increasingly dominated by the mega-cap tech stocks.
That’s not a bad thing.
Concentration is what creates outperformance…
Both for us as individual traders, and for the stock market as a whole (it’s how it soundly beats economic growth).
Amid all this though, the small-cap stocks are increasingly ignored by the majority of traders.
So for today – let’s look at what the hedge funds are seeing in these small-cap stocks.
Chart of the Day
This chart shows the level of short interest the hedge funds have in small-cap stocks futures.
The higher the chart, the more hedge funds are shorting small-cap stocks.
And right now, the hedge funds have built up the largest short position in small-cap stock futures in history.
Small-cap stocks as a whole have been severely underperforming large-cap stocks for the past few years.
And the hedge funds believe this performance gap will only widen.
Let me be clear. I’m not suggesting you stay away from small-cap stocks.
Many of my trade recommendations are in small-cap stocks, because they are still the stocks with the highest potential upside.
But what I am saying is that you absolutely cannot rely on investing in small-cap stocks as a whole (for instance, buying the Russell 2000 index).
That’s a losing strategy…
And the hedge funds are betting it’s going to become an even bigger loser.
The good news?
We can flip this to our advantage. I explain below.
P.S. My latest edition of 2 Trades in 2 Minutes drops later today. Text the word “trade” to 87858 and get the trades straight to your phone the second they’re released.
Insight of the Day
High short interest in small caps creates two opportunities – squeezes and crashes.
The record-high short interest in small caps is creating a highly opportunistic environment…
Where we can target profits in small stocks that are both surging and crashing.
Short squeezes can send certain stocks skyrocketing as the shorts rush to cover.
While in other stocks, the shorts turn out to be right – and the stocks fall through the floor instead.
The key is being able to identify which is which, so you can look to make money on both ends.
This is how you play this choppy market – where it’s up one day and down the next.
And that’s why in just a few hours at 11 a.m. Eastern…
I’m going LIVE to show you my most opportunistic strategy ever…
One that allows you to profit from both surging and crashing stocks.
This strategy has already helped us spot wins like:
- 102% in 12 days…
- 118% in 2 days…
- 101% in 5 days…
- 207% in 5 days…
- 519% in just 60 days.
Including during the painful March to April selloff this year.
And later this morning, I’m going to give you a live demo and even show you some of the newest setups it’s pointing to now.
So click here to guarantee your slot if you haven’t already…
And I’ll see you LIVE 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
“Traders agency is the best thing to happen to me. This team of stock gurus has educated me and helped me start earning money in my portfolio. Been using the methods that TA teaches for 3 months now and increased my earnings. Shout out to the Cartier Family for having Ross on their YouTube!
This is not a get rich quick scheme, this is to educate you on how to read the market and make decisions to earn money. Thank you Ross and team for passing on your knowledge to me. Looking forward to what the future holds.”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
