Small caps (IWM) are precarious There is an old saying among the men who stare at charts… “The more times a support level is tested the weaker it becomes.” Okay, men who stare at charts. Let’s see if your saying is right. IWM has banged support no less than six times and is doing it again. To boot, the price is below the moving averages, … Continue reading Small Caps ETF (IWM); the weaker it becomes?
Small Caps (IWM) are at a technical decision point And that decision is between breakdown or a hold of the daily trends of the SMA 50 (intermediate) and SMA 200 (major). This market seems to revel in keeping players in suspense (ref. the Copper/Gold ratio and other as yet undecided macro indicators). I would think that a loss of the small caps would not be … Continue reading You can bet a lot of eyes are on this ‘W’ pattern
Small Cap (Russell 2000) iShares is at important support The chart of IWM implies that the correction needs to end sooner rather than later or some markets are going to go in the dumper (many global markets, esp. those vulnerable to a strong dollar, already are). Interesting, since January is traditionally thought of as ‘small cap’ month. For “best of breed” top down analysis of … Continue reading Small caps at critical support
When downside leaders like the small caps finally revert upward to their previous (down) trends, maybe then the market will top out and the sentiment rally will terminate. If moves like this do not change their trends it is just hope (and the peoples’ funny munny as printed by the Federal Reserve) keeping the dream alive. It’s just a reversion to trend as the market … Continue reading When the Crap Reverts
In light of the dynamics in play in the interest rate market, one might want to watch a sector that favors rising interest rates (the Banks, given ZIRP at the Fed’s discount window) vs. rising yields out along the curve. Even though the curve is dropping, if we assume that banks are funded near 0% their lending out across the curve would have a profit motive.