Small caps have moved up to resistance. With Friday's move and todays move my guess is that the next move will be a consolidation of the almost 7% move in the last week. Volume has picked up but I wouldn't be surprised if there is just as much selling as buying into this lift. Economic factors do not have me pounding my fist to buy the most vulnerable companies out there. Typically small caps lead in a new bull market and not at the end of a cyclical bull inside a secular bear. My guess is to fade this move. I think markets want people to believe that the rally is broadening out and will pull the rug out on everything soon. Call me skeptical but I'm not in IWM until resistance is broken and there is a successful retest of the breakout.
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Breakout in play but need successful retest before any longs
i watched in amazement as 3x bull etf TNA rose 9% in a few hours. That is computer trading. just lucky I dumped TZA in the opening weakness. shoulda rolled it to gain 3 months' gains in 3 hours. seems likely this is so-called sector rotation... taking money from winning side to prop up weakest side and grab liquidity
BobbySpa
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@DaddySawbucks, yes saw your post earlier that you got out....this market isn't easy and the algos and computer trading are so sophisticated that they have literally sucked all of the volatility out of this market. Something has got to give soon. Feels manipulated at every turn and with very little economic news this week they are free to do as they please.
DaddySawbucks
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@BobbySpa, totally algo driven. MMs turn it on and it goes up. They turn it off and reap gains. Not bullish that RTY jumps 3% when DJI goes off 200 pips, as it did today. Just moving money. Would be a bull market if they all went up 3%... gonna break, someday.
just lucky I dumped TZA in the opening weakness. shoulda rolled it to gain 3 months' gains in 3 hours.
seems likely this is so-called sector rotation... taking money from winning side to prop up weakest side and grab liquidity