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TayFx
May 31, 2020 8:15 PM

WIM / RUT into June 20:14:22 (UTC) Sun May 31, 2020 

iShares Russell 2000 ETFArca

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As long as central banks prioritize the headlines, I will be following what the markets are projecting regardless of how irrational the price action. FOMO and momentum can be used to drive sentiment as we se it, and could be a good explanation. Another theme keeping things buoyant will be vaccine headlines over the weekend and also the possibility of the second wave here in the U.S. I suspect if this came to happen in a few weeks.

The key themes going into next week will be stimulus. The update from the federal reserve this week they showed they are purchasing high quality corporate ETF's (a new asset class for them) and amongst the ETF's being purchased was LQD . As you can see, it clearly benefited. For some that have been in the game for a while, front running the FED has never been our cup of tea, but the purchases of corporate bonds could be something that could be emulated successfully. The interest will be there, but I doubt that it's NOT already counted in.

20:14:22 (UTC)
Sun May 31, 2020

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This is not personal investment advice.
Comments
RadLunsford
Good work
Miketinkle
Nice... Keep it up
sankarmail
It looks like SPX and RUT are following very similar patterns.
TayFx
@sankarmail, no they are in fact if you look at price action you will see that the Russell has barely even reach the 61.8 while the S&P has breached the 61.8 up to the retracement zone the reason is is because the S&P 500 is calculated with much bigger market cap companies in the Russell 2000 which represents small monkey companies most of which are having a lot of issues trying to come back into the economy which is why I think Russell is the highest probability short over the S&P 500 in the next 4 to 5 weeks
sankarmail
@TayFx, Ah ok. Thank you. It looks like RUT is overvalued than SPX considering weak companies.
TayFx
@sankarmail, No way at all
sankarmail
@TayFx, Thank you. I'm not a trader. I take your word for it.
TayFx
@sankarmail, Sometimes the best traders are the ones that don't trade!
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