🏆 Today's Chart of the Day was shared by David Rath (@DJwrath).
- The Micro-Cap ETF ($IWC) achieved an all-time high today for the first time in more than four years, joining the Russell 2000 at record levels while Large-Cap indices remain stuck below their recent peaks.
- After more than a decade of harsh underperformance, smaller stocks have dominated since the April lows. Micro-Caps have pulled ahead of Mega-Caps this year, with $IWC +24% YTD vs. +16% for $MGC.
- As David notes, the recent change in leadership is becoming increasingly difficult to ignore. The ratio ($IWC/$MGC) is on pace for its best week in more than a year, logging a fresh 52-week high today.
The Takeaway: Micro-Caps ($IWC) broke out on both an absolute and relative basis today, indicating a potential shift in market leadership and a growing risk appetite for stocks overall.
