Small caps are back in favor again this week with two days in a row of gains. Bullish sentiment surrounding the Trump trade is back in a big way. Investors have become very enthusiastic around small caps and given the composition of the Russell it's no wonder the R2K has pushed higher by such a large margin. Financials make up over 20% of the index. The regional banks have done very well in the weeks following the election as rates on the long end of the curve have gone up.

In addition to that, investors believe investing in American businesses will boost the domestic economy and provide more fuel for the fire of the small banks. Companies borrowing from banks and investing in infrastructure projects could spark new, higher paying jobs and stoke inflation as well.

We don't need to debate the long term effects of any of these policies right now. All we have to do to make money is uncover the hottest stocks and the hottest sectors of the market and go for a ride. Here I've put together a list of the best momentum stocks in the eyes of your Zacks Rank.

Arotech (ARTX – Free Report)

Arotech Corporation provides defense and security products worldwide. The company operates in two divisions, Training and Simulation, and Power Systems. The Training and Simulation division develops, manufactures, multimedia and interactive digital solutions for engineering, use-of-force training, and operator training of military, law enforcement, security, emergency services, and other personnel. The Power Systems division provides electronics engineering and design, system integration, rapid prototyping, and vertically production services for military, aerospace, and industrial customers.

The stock has shot straight up from $2.30 in early November to over $4 today. The rally leapfrogged the previous 52-week high seen in April. Things are a little overcooked here with the commodity channel index (CCI) up at 146. I'd wait to see this cool off back to the zero line before thinking about pecking at this one.