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Over the last five months, the Russell 2000 has gained 20%. In the same time, the Dow has gained just 9.6%. The S&P 500 is up 10.5% in that time.
And the hot streak isn't over for small cap stocks, according to Money Morning's Small-Cap Investing Specialist Sid Riggs.
He recently saw a major bullish signal in the market that points to even more gains…
This "Golden Cross" Signal Is a Win for Small-Cap Stocks
The signal Riggs recently observed is called a "Golden Cross." It happens when the Russell 2000's 50-day moving average crosses above the 200-day moving average.
The latest Golden Cross occurred on Dec. 19. Since then, the Russell 2000 has gained 5.9% while the Dow has climbed just 2.1%.
And that's just the beginning of the index's run.
Riggs' research shows that investors who "go long" (invest for over 50 days) after a Golden Cross experience an impressive 78.13% winning percentage with an average return of 17.01%.
Many investors, though, have missed out on this run because they think small-cap stocks are too volatile. But a small-cap ETF is a safer way to collect as these stocks keep rising.
To pick a solid small-cap ETF, Riggs tapped into the strongest sectors.
"It's important to make sure you're investing with global must-have trends that provide strong tail wind," Riggs said. "My favorite sectors right now are biotech, cybersecurity, all-flash memory storage, artificial intelligence, and Chinese consumers – all of which either meet a critical demand for the future or are the future."
The biotech sector in particular has been extremely lucrative for investors in 2015. The Nasdaq Biotechnology index is up nearly 21% in 2015. The S&P Biotech Select Industry Index has done even better, up 27%.
Already this year, subscribers to Riggs' Small-Cap Rocket Alert have pocketed gains of 200% on two separate occasions following two explosive biotech companies.
And Riggs now has an investment that gives you a play on the biotech sector as well as the small-cap "Golden Cross" signal he recently spotted…