In one of his most successful trades of the year so far, Nick capitalized on a major breakout in the Russell 2000 (US2000) index, driven by a combination of macroeconomic shifts and well-timed entries. Let’s break down the trade, the reasoning behind it, and how Nick managed it with a professional trailing stop strategy.

The Setup: Fundamentals + Sentiment + Technical Support

Back in late May, Nick opened a long position on the Russell 2000 index (via $IWM in his personal account, and mirrored via US2000 CFDs for international traders). His reasoning? A confluence of fundamental and sentiment factors:

• Domestic Onshoring: With the Russell 2000 made up mostly of U.S.-based companies, Nick anticipated these small caps would benefit from economic initiatives favoring domestic production.
• Inflation Cooling: He believed inflation was easing enough for the Fed to consider rate cuts later in the year—typically a bullish factor for equities, especially smaller companies that rely more heavily on financing.
• Support Holding: On the technical side, the index had found support, giving a favorable entry with a defined risk.

Initial Entry: 2026.15
Initial Stop: 1950.16

Trade Management: Trailing the Move

As the trade developed, Nick adjusted his stop multiple times to reflect changes in price structure, market momentum, and macro news:

• May 29: Trimmed the stop slightly tighter to reduce risk after an early bounce.
• June 7–13: Trailing stops were placed below recent resistance-turned-support, especially following strong jobs data.
• June 27: Another stop adjustment came after the U.S. Senate passed a major spending bill under Trump—one that the market interpreted as highly favorable to small caps, particularly in sectors like industrials, finance, and healthcare.

Later Stop (as of July 8–9): Trailed up to 2187.61
"Locking in more profit… strong push today, and a higher low forming around 2200." —Nick

Strategy in Action: Using the EdgeFinder

This trade was a textbook example of how Nick blends macro analysis with tools like the EdgeFinder, our proprietary market scanner. The EdgeFinder flagged the Russell 2000 as a bullish opportunity weeks before the move, thanks to its:

• Bullish fundamental score (based on interest rate projections and inflation trends)
• Strong sentiment rating, due to institutional optimism
• “Top Setup” status, highlighting the asset on Nick’s radar

“My best trade of the year so far,” Nick wrote in a July 8 update.
“The EdgeFinder gave a bullish signal... I was able to buy the dip and trail the move up.”

Key Lessons from This Trade

• Be Patient with Good Setups: Nick’s trade developed over several weeks, and he never forced a target. He let the market run while trailing stops did the work.
• Let Fundamentals Guide You: Inflation trends and rate expectations drove this move. Understanding the macro story helped Nick align with the bigger picture.
• Use Tools That Reinforce Your Edge: The EdgeFinder served as a confirmation tool—not just identifying opportunities, but giving traders confidence in their thesis.

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