Small-cap stocks have seen some large returns this year.
The Russell 2000 index is up 6 percent year-to-date outperforming the broader S&P 500 which is up just 2 percent over the same period. And according to one trader, the charts are setting up for even more gains.
"If you look at the chart of the Russell 2000 from its early May low, you can see that it has outperformed both the S&P 500 and Nasdaq 100 over that period," CNBC contributor and technical analyst Todd Gordon said Friday on CNBC's "Trading Nation." And Gordon believes that relative outperformance will continue through the second half of the year. "It's better to be trading with the stronger trend than to try and play catch up."