Follow the Frogs & Small Cap Stocks For Health

As amphibian populations tend to be a good indication of ecosystem health, so is the direction of small cap stocks in an inflationary trend. An ecosystem in trouble tends to be foreshadowed by crashing frog populations. An inflationary trend in trouble tends to be foreshadowed by persistent leveraged outflows in small cap stocks. Recent inflows into small cap’s decline by commercial traders (CWA) reflects a QE(n) supported, healthy inflationary trend.

Russell 2000 (IWM) and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest: