Ignore Small-Cap Stocks at Your Own Opportunity Cost

“...narrow breadth has long been a concern of market participants as a sign of a potential retreat in stocks. To the extent those same participants were short lagging names or sitting on the sidelines, the rotation caught them flat-footed. This is potentially bullish as improving breadth moves bears off the sidelines or short covering occurs among those playing the narrow breadth theme… the RUT all-time high combined with a multi-year high in short interest on its component stock is bullish, unless and unti ...