I did some simple backtesting in TradingView and saw that the Nasdaq 100 and Russell 2000 can give more profitable results with a moving average crossover system. I found the S&P500 a bit less interesting with the Dow Jones being the most boring. The point is, the Midcap 400 looks similar to the Russell 2000. But why is it often missing from the main page on sites like Marketwatch, CNBC or Yahoo Finance? I mean I heard someone on Bloomberg saying that the Nasdaq is already expensive, a percentage of the small caps are not profitable but the midcaps is the sector that might do better in the next year.
All good points. It's true most people overlook the midcaps. My experience trading MDY options is that it pretty much parallels the IWM in short-term movement. IWM is a lot more liquid so its easier to trade options. Long term MDY easily beats IWM since IWM is full of biotechs that will never make any money so they are perpetually expensive. IWM is easier to trade but MDY is a better investment. I stopped trading MDY since it is illiquid. I think in short-term trading liquidity does matter.