You need this before markets open tomorrow

Don't be fooled by the headlines…

The S&P 500 hit all-time highs last week, but things aren't as bullish as they seem. That's mainly because the S&P 500 is a terrible market barometer.

Why? Well...

The S&P 500 only tracks the 500 largest companies in the market, a small pie of the thousands of stocks that trade on American exchanges.
The index is weighted by market cap. So it has an additional bias towards mega-cap companies like Microsoft, Walmart and Apple.
Its largest 10 holdings account for over 20% of the S&P 500's value

Meanwhile, the broader market is struggling. In fact, only about 54% of all stocks are currently trading above their 200-day moving average. That's not great.

But more troubling is the price action of small-cap stocks. The Russell 2000 is way below its record highs and have been stuck in a sideways channel for the entire year. Check it out:

In a normal bull market, small-cap stocks should lead the market higher (or lower in a bear market). This is a big disconnect, and it can't last forever.

That's why right now I'm focusing on a strategy I designed with Rob Booker for this exact market.

The strategy trades currencies and gold. And it's worth learning about: It's delivered a 3,845% return since 2012.

The results of the strategy are completely uncorrelated to the stock market. It was built to make money in bull, bear and sideways markets. If you're mostly trading stocks and options to the long side, I truly believe that you need this strategy.

It should help you reduce overall portfolio risk while increasing returns.

And don't let the fact that it trades currencies discourage you, I promise it's not complicated. In fact, it's as easy as trading stocks and you can do it on whatever brokerage you're using now for stocks and options.

Here's everything you need to know the strategy.

Markets are at all-time highs now, but I don't think they'll stay at these levels long. Do yourself a favor and add this strategy to your toolbox before Monday.