Good Wednesday morning. Another overbought blast higher yesterday took the Dow and Nasdaq 100 to fresh ATH’s while the S&P 500 keeps inching closer, now less than 1% away. I was on Charles Paynes show two weeks ago where I told Charles we expected a 40% move higher in our favorite index, the small caps, over the next year. 10% down, 30% to go.

Small caps are actually up 23% from late October when we began pounding the table to buy them (with 74% gains in VRA Buy Rec TNA, the 3 x leveraged small cap ETF).

However, while small caps may be on fire, they’re also still 18% below ATH. As my mentor Ted Parsons used to say “bull markets don’t really even start until you hit all time highs”.

He was right then and he’s right now. As overbought as we are, and as fast and furious as this move has been, we’re only now beginning to hit ATH’s in our broad market indexes. That’s when the fun starts.

All across America, investors (both retail and institutional) are having the same conve...