Trades with cats wrote:Pasta Boss, now that is enlightening. The media has been trying to herd retail investors into IWM claiming it is all about the rotation out of large caps because of the dollar. That hasn't set well with me especially given how very very small the small cap trading volume is compared to the large cap indexes.
Have you considered the possibility that large fund are rotating out of large cap and into small caps as well as into U.S. Dollars?
I think you may find your missing “trading volume” there.
Thanks for the idea. With the small number of futures contracts trading in the E-mini Russel 2000 contract it wouldn't take much for a Vanguard or Fidelity to send it over the moon. A scenario that makes sense is the health and energy component takes off dragging the index with it at a time when some major fund managers are looking for something positive to buy and its off to the races.
If accurate I bet we could see solid out performance around window dressing times.
Personally I am more drawn to the idea of shorting emerging market debt etfs because that is so straightforward. The long term risk of borrowing in a different currency if you aren't hedged seems to result in spectacular collapses. Lets you sound like a genius at cocktail parties
SPX stalling here.. short of gap fill .. nibble/ add / reload to short side.. not ideal.. seems upper pink triangle seem more doable.. but if LOD goes = ugly fast
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fehro wrote:SPX stalling here.. short of gap fill .. nibble/ add / reload to short side.. not ideal.. seems upper pink triangle seem more doable.. but if LOD goes = ugly fast
/CL drops hard nLOD… weekly looking a tad toppy if /CL closes near 70.50 oil weakness.. indexes weakness
Pink line goes on SPX .. look out below
It's a little hot. It normally will not stay this high for long.
In fact, it has dropped from over 2 to 1.75 since I posted.
We will see at the close ...
When the Indicator is above 1.0 but below 2.0 it indicates selling pressure, and a short-term downtrend may be in effect. During such times, short-term short trades are preferable to long trades.
When the indicator is below 1.0 it indicates buying pressure and a short-term uptrend may be in effect. During such times, short-term long trades are preferable to short positions. Given that there is so much “noise” around 1.0, price analysis must also be used to determine direction and filter out false signals in the TRIN.