$IWM is setting up for something rare: outperforming $QQQ in an up year. That hasn't happened in a decade.
Historically uncommon setup. Small caps have been left for dead while big tech ran the show. If rotation into value and smaller names accelerates, this could be the year the Russell finally catches a bid while Nasdaq stays green.
Watch for confirmation—if $IWM starts holding relative strength vs $QQQ on pullbacks, the trade is live. Risk is a quick snap back to mega-cap dominance if recession fears spike or if AI hype re-accelerates into the same 7 stocks.
But the setup is real. Divergence trades like this don't come often.
Historically uncommon setup. Small caps have been left for dead while big tech ran the show. If rotation into value and smaller names accelerates, this could be the year the Russell finally catches a bid while Nasdaq stays green.
Watch for confirmation—if $IWM starts holding relative strength vs $QQQ on pullbacks, the trade is live. Risk is a quick snap back to mega-cap dominance if recession fears spike or if AI hype re-accelerates into the same 7 stocks.
But the setup is real. Divergence trades like this don't come often.