In Today’s Masters in Trading: Live Markets are climbing a wall of worry right now. Fed Chair Jerome Powell is speaking at today's symposium, and nobody knows what he'll say about rates. But here's what I'm seeing: one key indicator is flashing a huge bullish signal for rate cuts. Just take a look at the Nasdaq 100 Index chart below. 
That recent sharp drop from the peak (circled in red) represents a classic 2.5% selloff from last week's highs. Why is this happening now? Investors are simply growing increasingly wary of AI valuations. Magnificent 7 names like Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META) are leading the decline amid mounting skepticism about the AI hype bubble. But look at the bigger picture — this index has been in a massive uptrend for over five years, climbing from negative territory to over 140. The key insight? That recent dip isn't random. It's telling us the market expects rate cuts – and soon. So while everyone's panicking about big tech, smart money is quietly placing its next big bet. And the institutional money is broadly rotating into small caps right now. Small caps have been strengthening against the Nasdaq for months. This isn't just a blip — it's a massive shift that most traders are completely missing. Think about it this way. When the Fed cuts rates, small caps explode. They're more sensitive to interest rate changes than large caps. Lower rates = cheaper borrowing = higher profits for smaller companies. I actually went into detail on how this all works in a recent episode of Masters in Trading LIVE that you can watch here. Markets are already moving before Powell even speaks. They're pricing in rate cuts whether he announces them today or not. The question isn't if — it's when. And that could mean the difference between getting in early or chasing the move. That’s why I've identified 10 small cap names positioned perfectly for the potential rate cut wave taking shape. These names include everything from quantum start-ups to the biggest players in military defense. They’re not random picks. They're all connected by one key strategy that signals massive upside potential. Want to learn the strategy behind these picks? [Click here to join the Masters in Trading Challenge] — where I teach the exact system for spotting these opportunities before they move. And join me for Masters in Trading LIVE at 11 AM EST, where I'm breaking down all 10 small cap names positioned for big moves on rate cut news. 
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