August 13, 2025

Small Caps Surge…But They Come With A Warning

The Russell 2000 (IWM) surged due to rate cut expectations, signaling a catch-up trade for small caps lagging behind Nasdaq and Dow.

Scott Bauer shares insights on trading this breakout…but warns of market complacency, and highlights a few broader economic trends impacting volatility.

Scott covers:

  • The Russell 2000’s spike driven by rate cut probabilities
  • Its lag behind major indices like Nasdaq and S&P 500
  • A strategy to consider buying protection due to low volatility and market complacency
  • Resistance at the Russell’s 2,300-2,400 level, with failure to break out signaling potential pullbacks
  • The importance of proactive risk management
  • Broader market caution as tariff effects and economic data could disrupt the current rally

Here’s What’s Also Happening at Prosper…

Scott Bauer is joining Howard Greenberg for a FREE live training at 8 PM tonight to discuss Crypto 2.0, and why Howard believes this is an ideal time for traders to enter the next era of digital wealth with confidence.

Howard is covering what Crypto 2.0 is, the differences between coins (and major players in the crypto space), plus he’s covering how (and where) traders can buy safely.

>>>Click here for more information

about the author:

Prosper Trading Academy

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