Tag Archives: IWM
The Russell 2000 index reached new highs but price action is confined in a slowly rising channel in past six months. The trailing 12-month P/E ratio of the index is at 82. The top 20 holdings of the IWM ETF … Continue reading
The small cap index is heavily weighted towards financials and about 26% of the IWM ETF is allocated to shares of companies in the financial sector. Yesterday financials rallied and small caps gained 2.2%. Question is: Is this rally in … Continue reading
In an article last June, I analyzed the top 20 holdings of the iShares Biotechnology and Russell ETFs and concluded that they were bubble markets. Since then the situation has improved but not significantly and some risks are still present.
The Russell 2000 index rallied 2.86% yesterday to close above both its 50- and 200-day moving averages. In the last 7 days the index has gained 6.2%, which translates to a massacre for technical head and shoulders and double top traders.
Recently I made a couple of references to the difference between the RSI(14) based on exponential moving averages and that based on simple moving averages. Simply put, if you pay attention to this indicator because you think either that the fallacy of the … Continue reading