“January Effect” Already Here: A Small-Cap Leveraged ETF to Use

Core Insights - The "January Effect" is anticipated to manifest earlier this year due to traders positioning themselves ahead of the new year, leading to an early rally in small-cap stocks [1][2] - Historically, small-cap stocks have lagged behind large-cap stocks, particularly those associated with AI, but there is optimism for a potential turnaround in 2026 [2][3] Small-Cap Performance - Small-cap stocks, represented by the Russell 2000 index, have not seen significant movement post-Thanksgiving, but a "Santa Claus rally" may still occur [2] - The Direxion Daily Small Cap Bull 3X Shares (TNA) is highlighted as a potential investment opportunity for bullish traders, offering three times the exposure to the Russell 2000 index [3] Seasonal Trends - The holiday season is generally favorable for all market caps, with a bullish trend expected to last through the first two trading days of the new year [4] - Leveraged funds such as the Direxion Daily S&P 500 Bull 3X Shares ETF (SPXL) and the Direxion Daily Mid Cap Bull 3X Shares (MIDU) are also recommended for traders during this season [4]