Small Cap Signals
Itβs no secret that the Russell 2000 has been a leading sector for some time now in anticipation of rate cuts.
The index has been on a historic run - moving extremely quickly.
Below you can see that the 5-day rate of change % for the Russell is at one of its greatest levels we have ever seen:
When we reach these extreme levels, letβs look at how the market has performed over the years:
You can see that by in large, 12 months after this signal, results are extremely strong. This is a great sign for the market, but of course it is no guarantee of how we will act.
Use this knowledge to your advantage. I break this down further here: