One trader believes the market rally isn't over yet, based on the performance of the small-cap Russell 2000.
The index hit a one-year high on Monday, which Tim Seymour of Triogem Asset Management sees as an encouraging sign for the overall market. For the past couple of weeks, the small-cap index has been outperforming the S&P 500, which opened at an all-time high on Monday morning.
The Russell move is "indicative of the fact that there's probably more strength in the consumer than we had thought six months ago," Seymour said Monday on CNBC's "Trading Nation."
"I think the fact that small caps are outperforming, obviously this is an indicator of risk appetite," he added. "To that extent, [it's] very different from where we were in the Russell only six months ago. It's been an extraordinary move."
What's more, Seymour believes that now would be a good time to look beyond U.S. stocks, especially given what he sees between the ETF tracking the Russell 2000 (IWM) and emerging markets.
"Historically, [the Russell 2000] has been an index where I've really wanted to get short protection because of the higher beta elements of this index, especially for [traders] investing in global markets," he said. "The IWM correlates very well with the risk I have in a lot of emerging markets, so buying puts in the IWM right now are very, very attractively priced."