ROI Note Small & Mid Cap June 2019

The Small & Mid caps have been struggling for the first half of 2019.  Both the small-cap and mid-cap indexes have been trading sideways and choppy since January 2019.  When looking over the last 18 months the Russell 2000 Small-Cap Index is down 3% since Jan 2018.  These stocks have been whipsawing and because we follow strict exit rules we’ve been exited out of a  lot of our trades over the last 6 months booking small losses on many of our positions.  With this said, as of late July 2019, the small and mid-caps are starting to perk up and our current open positions are  starting to trend higher.  Thus, there is a reasonable chance that the small & mid-caps will outperform through year-end 2019.