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MIAM1
May 4, 2020 11:11 PM

Juiciest Short. Why Russell has 54% rotted-out sectors inside.  Short

US Small Cap 2000 IndexTVC

Description

Another multi-disciplinary, cross-asset class approach to looking at a pig painted up for a pageant...The Russell.
We xplore the basic technicals, the STRONG SIGNALS inside the RUT...and OUTSIDE THE RUT.

We still think this has the most downside out of all the equity markets...

Think otherwise ?

We'd love to hear your logical and data-driven story...

Comments
mahdiawale
I always watch the RUT... I think it's a leading indicator for the markets. Great video, I hope ur right but I need to stop watching people I agree on lol I always lose money when that happens.
Chartskew
Good video. What about bailouts for health care and how have fed structured the loans to the banks so that they do not default from loans they are giving out?
MIAM1
@Chartskew, bailouts prop up balance sheets...does not change the rotted out fundamentals.
Ask yourself?
Would you sit in the waiting room of a hospital that has known COVID cases...to get a checkup?
Or would you wait it out a bit...

America is trying to figure out how to get back to trusting healthcare...til then...downside, amigo =)

Thx for the feedback
MIAM1
I just take the less crowded, more probable trade.
The COT has 3x the shorts lined up on the SP vs the RUT.

I am shorting dow, sp, rut...but my money on the better returns is on RUT. I have a 30% greater short position on it.

Recovery is too far away for me.

You’re home.
I’m home.
Until that changes...balance sheets are cooked.

And I’m betting the RUT has terrible balance sheets inside...

Great questions...hopefully my simple answers make some sense :0
Sarbitrage
Love your videos! All you need to know short and simple!
Have 2 questions though.
So your point about why the US2000 will get in bigger trouble than the US500 makes perfect sense. But since this will be a correction of a unrealistic recovery from a shock would it not be possible that stocks that did recover far more would have a bigger correction potential? So US100 have more to loose of what they gained the last month maybe? Im sure they wont loose so much income in a crisis but they have risen far more the last month.
And what about crisis winners vs crisis loosers? Isnt it a bad idea to short a index vs a big list of individual stocks?
Methinxs: The companys in the lower part of the US2000 list doing the worst in the crisis get kicked out and the companys in the 2000-3000 range doing good in the crisis get taken into the index. I actualy dont know when the list gets updated so just a thought:D And you said vix is better than us500 anyway so why do you invest in the SandPs also?
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