Trade Update: Russell 2000 Long Position.

Trade Update: Russell 2000 Long Position

Hi everyone,

Here is a quick update on our Russell 2000 long trade.

Current Strategy We have recently sized down this position. The index has been moving sideways over the last few weeks, so we are actively trading the range: buying on the dips near the bottom and taking some profits off the table at the top.

The Catalyst We Are Waiting For We are looking for a clear bullish catalyst—specifically, a green light for Federal Reserve rate cuts. To time a larger entry, we are closely monitoring:

• 2-Year Treasury Yields: Waiting for yields to drop, signaling the bond market expects imminent cuts.
• Real-Time Inflation Data: Looking for a downside surprise to give the Fed room to act.
• GDP Data: Ensuring economic growth remains stable enough to support small-cap earnings without forcing the Fed to keep rates high.

Next Steps If these three indicators align and confirm a breakout above our current trading range, we will increase our risk and scale the position back up. Conversely, if inflation proves sticky or the data breaks against us, our currently reduced position size protects our capital while we wait.

We will keep you posted as the data develops.

Trade Russell200o or IWM or equivalents.