📈 Index Strength

This index is leading the market higher.

Index Strength

One exercise that I do every week and I think everyone should do is take a look at the indexes relative to each other to see where we are seeing the most buying.

It’s a simple exercise but is very telling in terms of helping you understand where institutions are committing capital.

Here is what it looked like last weekend:

You can see that the IWM is outperforming the SPY and QQQ by a significant margin.

Now this is a major departure from what we have seen from the indexes. In recent history, the IWM has underperformed by a significant margin.

However, because of impending rate cuts, small caps are seeing significant buying.

With this in mind, I would focus on IWM names because it seems we are seeing a significant rotation here.

Some names to watch include: DPST VNO SLG TOL KBH AFRM UPST CVNA

I go more in-depth on the names that you should be focusing on and why here: