1. Strong earnings growth has driven a significant market rally, with the S&P 500 and Nasdaq rising over 25% and 33% since April 2025 lows; 2. Current valuations (PE, Price to Book, Price to Sales) are near multi-year highs, resembling past bubble periods; 3. The author urges caution due to thin risk-reward ratios and advises preparing exit strategies amid potential valuation compression and momentum shifts.

1. Small-cap stocks, especially the Russell 2000 ETF, have outperformed the S&P 500 recently. 2. Zweig Breadth Thrusts suggest potential market gains in the coming months to a year. 3. Invesco S&P SmallCap Momentum ETF (XSMO) is a top-performing fund with strong technicals and potential for continued success.