Comments on: Interesting Development on the Russell 2000 http://blog.afraidtotrade.com/interesting-development-on-the-russell-2000/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Don Da Mon http://blog.afraidtotrade.com/interesting-development-on-the-russell-2000/comment-page-1/#comment-131293 Don Da Mon Fri, 22 Aug 2008 13:50:37 +0000 http://blog.afraidtotrade.com/?p=2816#comment-131293 Was Aug 11-20 a bull flag for the S&P 500, not a break in in the triangle? Target 1350 perhaps? The Aug 11-20 period resembles April 2-14, doesn't it? At 1350 we would remain in an overall down trend for the S&P. I see the current current rise in the S&P as just a bear flag in the overall downtrend. Was Aug 11-20 a bull flag for the S&P 500, not a break in in the triangle? Target 1350 perhaps? The Aug 11-20 period resembles April 2-14, doesn’t it?

At 1350 we would remain in an overall down trend for the S&P. I see the current current rise in the S&P as just a bear flag in the overall downtrend.

]]> By: Richard http://blog.afraidtotrade.com/interesting-development-on-the-russell-2000/comment-page-1/#comment-131288 Richard Fri, 22 Aug 2008 11:28:17 +0000 http://blog.afraidtotrade.com/?p=2816#comment-131288 The Russell 2000 shares, IWM, and especially the Russell 2000 value shares, IWN, have benefitted the most of all indices and sectors, with exception of the homebuilding stocks and biotechnology stocks, from the yen carry traders going long the US Dollar and buying the financial stocks beginning July 14, 2008, after they took profits on selling oil, USO. The Russell 2000 stocks are small US based American companies highly influenced by the financial sector; they got "goosed up" by the rally in the financial sector. They will now fall like a rock and manifest their traditional volatility as the finanical sector fails, greatly rewarding those who go short at this time. Like you point out 72 for the RUT is a significant number; it's the middle of a 'broadening top pattern' that goes back February 27, 2006. It's as Street Authority relates "when you see the broadening top, the market will eventually drop". The Dow got knocked out of its ascending wedge by AIG's need to recapitalize and likely downgrade by rating agencies. Given all this bearish development, I recommend that one most definitely go long SKF and possibly short FXP and EEV. I also recommend that one be invested in gold at BullionVault and GoldMoney. The Russell 2000 shares, IWM, and especially the Russell 2000 value shares, IWN, have benefitted the most of all indices and sectors, with exception of the homebuilding stocks and biotechnology stocks, from the yen carry traders going long the US Dollar and buying the financial stocks beginning July 14, 2008, after they took profits on selling oil, USO.

The Russell 2000 stocks are small US based American companies highly influenced by the financial sector; they got “goosed up” by the rally in the financial sector.

They will now fall like a rock and manifest their traditional volatility as the finanical sector fails, greatly rewarding those who go short at this time.

Like you point out 72 for the RUT is a significant number; it’s the middle of a ‘broadening top pattern’ that goes back February 27, 2006. It’s as Street Authority relates “when you see the broadening top, the market will eventually drop”.

The Dow got knocked out of its ascending wedge by AIG’s need to recapitalize and likely downgrade by rating agencies.

Given all this bearish development, I recommend that one most definitely go long SKF and possibly short FXP and EEV.

I also recommend that one be invested in gold at BullionVault and GoldMoney.

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