US2000 - Important support & pitchfanHi friends!
Here an interesting idea. I really think this index has reached important support.
I have opened new long positions.
Any comments?
Good luck!
Israel
US2000 trade ideas
Small Caps Are StrugglingThe S&P 500 keeps hitting new highs, but the Russell 2000 small cap index hasn’t been so fortunate.
RUT has gone almost four months without a new record level. In contrast, the Dow Jones Industrial Average and Transports haven’t hit a new high in over two months. The S&P 500 and Nasdaq-100 hit new highs this week.
A few bearish patterns stand out on the small cap chart. First, notice the lack of bounce at the 50-day and 100-day simple moving averages (SMA). This is different from the earlier rebounds at those lines in May and June.
Next, the shorter time frame: RUT’s 8-day exponential moving average (EMA) crossed under the 21-day EMA last week and has remained below it.
Turning to the longer-term weekly chart, we see a bearish inside candle at the end of June. A red bar followed and now we’re in another down week:
It’s not totally bearish overall, but there are growing signs of weakness and poor relative strength. If the market has summer volatility, the sellers may begin their work in RUT.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Russel finding valueThe russel 2000 has been finding value since a few weeks now.
I feel it comes from the uptrend we had with people eager to see it upper but not willing to pay so expensive.
One thing I noticed though, is the volume going down. Usually a range is breakout is seen after volume start to decrease.
Like and comment
Small Cap Party is about to finish..! (Bull Trap)As I mentioned before, this recent bullish move is a part of a complex correction in small caps, and it is very unlikely to be repeated in the next 2 weeks!
Looking at the 10 biggest company based on the Market cap will show the reality behind my analysis:
1- NASDAQ:CZR
2- GME
3- NASDAQ:PLUG
4- NYSE:AMC
5- NYSE:RH
6- NASDAQ:PENN
7- NYSE:DAR
8- NASDAQ:NVAX
9- NYSE:DECK
10- NYSE:CLF
Obviously, nothing special happened and there is no money flow in these stocks but AMC..!
buying inverse ETFs like SRTY (-3x) would be a better option with lower cost to benefit from the next AMC crash..!
AMEX:SRTY
Complex Boring Correction..!The Russell 2000 index, created in 1984 by the Frank Russell Company, is comprised of 2,000 small-capitalization companies.
The index is frequently used as a benchmark for measuring the performance of small-cap mutual funds.
Many investors see its breadth as giving it an edge over narrower indexes of small-cap stocks.
In the past 2 weeks, RUT 2000 experienced a +7.3% gain.
As II previously said, this recent rally would not be considered a bullish market because of the low trading volume, but it is a part of a complex correction! I believe this situation could last for the next 1-2 months.
Most probable scenario:
A: If we see lower money flow: Bearish breakout (I think this is the most likely to happen)
B: If we see an increase in money flow: Bullish breakout ( If 6 trillion dollar bill pass fully, this could be the case)
Russell 2000 - Please Stop Buying ItPick any path you want, none look appealing from a bull's perspective.
I created this chart today because I found incomprehensible that the Russell tape kept getting bought aggressively into today's close. Forget about the fact that this index has tested the lows of this triangular range (black date range above) several times, but what is more troubling is that these are small-cap companies trading at what used to be Blue Chip prices, like a year ago.
Small caps should be respected for their bearishness; they are the first to get punched when the indices agree downward and they are also the hardest to get punched. This makes sense because smaller companies are less likely to maintain operations during times of economic hardship due to a number of logical cash-flow-related items. Thus, while it hasn't been made abundantly clear by the media or US politicians yet (Europe is less delusional) that the economy is doing not-so-great, I find it ridiculous that the only index to get aggresively bought during this intensely bearish afternoon session was the Russell 2k.
This is a testament to how little people fear markets these days, or rather, it is that they have only experienced this 2020 rally and do not care/were not alive during the year 2008. The type of fear that has been omnipresent since January 2021 is that of FOMO. Typically, when people are fearful of transient, bearish price action, the natural reaction is to panic-sell. Well, it's now clear that we have entered a new age where it is human nature to panic buy the riskiest assets when markets show bearishness.
I only kid, of course - there is no actual no new age of anything. In fact, I'd imagine that it'll only take the first near-term apolcalyptic selloff to reprogram the market masses.
All I ask is that you not be long the Russell at times where it makes more sense to be long just about anything unrelated to stocks.
-Apigolyptic Selloff 2k21
AMEX:IWM
RUSSELL:RUT
GLOBALPRIME:US2000
TSE:SMALL500
BMFBOVESPA:SMLL
SPCFD:SPX
NASDAQ:IXIC
DJCFD:DJI
CURRENCYCOM:US500
CURRENCYCOM:US100
CURRENCYCOM:US30
CBOE:RVX
