We often note in NFTRH that it is logical for the Small Caps to out perform the Large Caps during a time of US dollar strength. The reason is that a much higher percentage of the SC’s business is done domestically, compared to the large multi-nationals populating the S&P 500 and the Dow. We have also used this monthly chart to show that the US … Continue reading About That RUT 2k Breakout
Former NFTRH+ bull stock BSX was recently highlighted as a short due to this disgusting chart. When it was highlighted it was below the SMA 50 but went on to become more bearish in creating and breaking a neckline. At that point a target was assigned. Looking good for anyone who tried this and is still holding. But don’t be greedy. As noted in a … Continue reading NFTRH+; BSX Just About to Target (Public)
We have used this very simple indicator chart to show how the Small Caps have led the market in 2016, but done so within a post-2013 downtrend. With the 2016 channel having risen to near the top of the downtrend channel the view has been that Small Caps had an inferior risk vs. reward to the S&P 500. It does not mean buy the S&P … Continue reading A Bullish Leader Turning Bearish Leader
My tolerance on a short position against small caps (via IWM) is shown here in this weekly chart. A break of the blue line and I’d probably move on. Among all the NFTRH+ winners shown lately, this would be a loser as the originally noted stop loss was “Above 1120 (and the EMA 120) to suit risk tolerance but I would be careful about letting … Continue reading NFTRH+; Russell 2000 to the Limit Area
Here is the (weekly) Russell 2000 chart we used in 2015 to show that a moving average cross and a similar looking pattern have occurred that resulted in severe downside in 2008. I think we can disqualify the 2011 ‘comp’ because that moving average cross was quickly reversed and the current one, despite the big rally, is nowhere near being undone.
Russell 2000 is poking below support this morning. That would be okay as a potential in-day whipsaw but other indexes were showing negative signs 2 days ago (subscribers ref. last market update). A weekly close of all this stuff below their respective parameters (like RUT support line) would be very not good. Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates and … Continue reading RUT Roh
Yesterday the S&P 500 closed once again within the range we have been watching, that includes the upside (1993.48) and downside (1903.07) parameters to a test of what we have called ‘Resistance #2’ at 2040 (Resistance #1 was 1975, which SPX is still dealing with on its bounce attempt).
Over at Biiwii on Monday we noted that a momentum leader to the US stock market – the Biotech sector – was abdicating leadership in favor of the momo driven Internets that everybody now seems to want a piece of. Another off and on leader may be breaking down as well. The Russell 2000 has fallen out of a wedge (might an EW call this … Continue reading RUT: Another Leader Abdicating?
Well here it is, the Russell 2000 Small Cap index. We had been managing a Diamond pattern (consolidation, not necessarily continuation or reversal, see lower panel) by daily charts and the RUT’s break from the Diamond would be the ‘tell’ on trend resumption ↑ or reversal ↓. It broke ↑. The weekly chart is a bigger picture guide to a market leader and folks, while … Continue reading Want to See a Bullish Chart?
Gold poked above the SMA 50 and 1200 level. This is its minimum requirement to get bullish. Above 1240 and then 1260 would be very constructive. Gold has taken on an anti stock market stance recently. Will it make a higher high to December if the US stock market does not make a lower low to December (just a question to ponder, see below)? Silver … Continue reading NFTRH; Market Quick Check
During the early December correction that set the stage for the Santa rally, we (being NFTRH) watched the Russell 2000, which had actually been relatively weak as it floundered below resistance at around 1150. It then smashed through that resistance and joined the other indexes in bullish territory. It has since taken up leadership in what seems almost too logical a manner, considering that this … Continue reading About Those Small Caps
Turning to one of our leaders, I wanted to show the Russell 2000 from weekly and daily views.