Small caps outperformed Large caps by 4.5% — a 6 standard deviation event. Check out some tweeted charts.
Small caps outperformed Large caps by 4.5% today, a 6 standard deviation event and the 2nd biggest outperformance on record (trailing only the 10 sigma differential on October 10, 2008). $IWM $SPY
Chart of the Day: https://t.co/7ELaBkErm6 pic.twitter.com/HLmVmqQusj— Charlie Bilello (@charliebilello) July 12, 2024
There’s been just one other trading day since 1979 when the small-cap Russell 2,000 rose 3%+ while the S&P 500 was down on the day.
10/10/08: R2K was up 4.6%, S&P was down 1.2%
Today: R2K up 3.35%, S&P down 0.75% pic.twitter.com/lGYIw51VFM— Bespoke (@bespokeinvest) July 11, 2024
Rotation today is being driven by hedge funds facing short-squeeze on their small cap hedges as yields come down.
Coming in to today, our tech showing clearly these managers overweight growth and underweight small+mid cap stocks as hedging shorts. Squeeze could run for awhile. pic.twitter.com/XzL8SIFARx— Bob Elliott (@BobEUnlimited) July 11, 2024
