You know my view on what’s likely to happen for the big indexes like the S&P 500 – a pullback or pause is due.
But let’s forget about that today and focus on small-cap stocks, which look like they’re about to break out strongly.
Chart of the Day
This is the Russell 2000 Index over the past two years. Unlike its larger-cap counterparts, it’s still a substantial distance from its all-time highs.
But you don’t need new record highs to make a profit.
Over the past three days alone, the index has risen close to 5% – nearly equivalent to the move in the S&P 500 for the whole of 2024.
And as you can see, this steep rise has taken it above the defined resistance levels over the past 18 months – and could be about to send it past its most recent high back in end-December.
It’ll be extremely difficult for the large-cap indexes to make moves like these. Not so with small-cap stocks.
And that’s why I believe that’s where the opportunity is right now.
Insight of the Day
When you see an impending breakout, a high-percentage bet is to always go after the market leaders.
A 5% move in three days is very impressive for the index.
For individual stocks – especially small-cap ones? Not so much.
Remember, if the index breaks out, but all you manage to do is capture the same returns as the index – then by definition, you only have average returns.
So, if you want to really take advantage of this impending breakout and target superperformance – you have to go after the market leaders.
This is a tested formula that has worked time and time again spanning back decades.
The best traders in the world have used it, I’ve used it, and many of my members have used it.
That’s why later today at 12 p.m. Eastern…
I’m going LIVE for a masterclass on a strategy that will show you exactly how to target these market leaders.
This strategy could have allowed you to pick up recent fast gains of 45%, 37%, and 53%...
But with small-caps breaking out – this could just be the start.
So make sure you click here to save your seat for my masterclass later…
And watch out for the login details in your inbox shortly.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
