Author recaps a volatile two-day market move driven by Greenland tariff headlines and argues small caps (Russell 2000) are outperforming due to domestic focus while Mag 7 suffers, holding mostly cash with a small IWM bet.
IWM — LONG The author argues small caps make sense because the Russell 2000 has outperformed the S&P for 12 straight days, the first time since 2008, and is up 7% YTD while the S&P is flat. Small caps are domestic and don't get hit as hard when Trump threatens Europe with tariffs, while Mag 7 names like Apple, Meta, and Microsoft are down 6-8% on the year. The author holds mostly cash with a small IWM bet and expresses uncertainty about the trade.
The one thing that makes sense to me is small caps. Russell 2000 has outperformed the S&P for 12 straight days. Last time that happened was 2008. Russell up 7% YTD while S&P is basically flat.
This Reddit post, published January 22, 2026, features u/Yaashicca discussing IWM. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/Yaashicca · Tickers: IWM