Tag Archives: IWM

Fragile Rally In Small Caps

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

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Small Caps and Biotech Are Still Weak Links

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.

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RUT(hless) Massacre

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.

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Losses Mount for Russell 2000 Head and Shoulders Traders

In the era of social media, it is unlikely that anyone can profit from a widely talked pattern, like the head and shoulders in Russell 2000 and in its popular ETF, IWM. If you are not sure of what is happening, you … Continue reading

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“Don’t let them fool ya…”

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

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Massacre on Wall Street with the Usual Victims

Once more naive chartists fell victims of their own arrogance. Although surrounded by robots, they thought this time around their flagship pattern of head and shoulders would compensate for a long streak of failures during this and last year. “No way” the  … Continue reading

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Another Major Failure of Chart Pattern Analysis

Another major chart pattern, this time in Russell 2000 Index, has just failed. Chartists are dumbfounded by the failures of even the best of chart patterns recently. Some have come to understand what is happening but some others still resist not realizing … Continue reading

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Price Action Lab Alert for Monday, April 2, 2012

This alert is about long and short signals in major ETFs.

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