Good Tuesday morning. Following 13 straight days of gains (nasdaq, semis), the markets rallied into the close but wound up finishing (slightly) lower on the day. However, not all indexes fell, as the Russell 2000 (small caps) rose .57% to another ATH. From the beginning of the year we forecast that small caps would lead the way higher in 2026 and to date, that’s what’s happened with the R2K up 13.4%. If you’ve followed small caps over the years you’ll remember that when they get going, they really get going, with 6-12 month moves higher that take your can breath away. We expect this to be one of those moves. We own TNA (3 x R2K ETF) from $54.90. Last: $62.

While the markets were a bit lower, once again the smart money hour was bullish (14 straight days). When the markets rally into the close consistently it’s a highly bullish directional tell. Finally, in what was the most bullish tell of all from yesterday, even as we had negative “war headlines” from over the weekend, with oil fin...