After the economic turmoil generated in the markets by the Fed's statements this week, US indices have reacted with a slight correction. This afternoon, data on industrial production, retail sales and sovereign debt auctions will be crucial (short term, 15 and 30 years ahead), as well as the US government unemployment figures, which will impact the markets, including currencies.
In particular, if we look at the performance of the Russell 2000, although it follows a similar trend to other long-term indices, its movement is more pronounced in the short term than the other three US indices. In today's premarket, it shows a decline of 0.05%, similar to the Dow Jones. This is due to the fact that U.S. mid-sized companies have a more productive rather than technological composition, a characteristic that generates greater volatility versus the large corporations of the major indexes. For example, the Russell 2000 was hit harder in 2020 than its counterparts.
The top 10 companies in the Russell 2000 are:
• Shockwave Medical: Healthcare
• Emcor Group Inc: Industrials
• Iridium Communications: Telecommunications
• Saia Inc: Industrials
• Apellis Pharmaceuticals: Healthcare
• Inspire Medical Systems: Healthcare
• Crocs Inc: Consumer Discretionary
• Texas Roadhouse Inc: Consumer Discretionary
• Kinsale Capital Group: Financials
• Prometheus Biosciences: Health Care
The average of all Russell 2000 companies is $2.951 billion in May 2023, with the top company valued at $10.383 billion and small companies in the $200 million range. The index weights average as follows:
Industrials: 17.50%, Health Care: 16.81%, Financials: 14.86%, Consumer Discretionary: 13.90%, Technology: 10.64%, Energy: 6.74%, Real Estate: 6.42%, Basic Materials: 4.24%, Utilities: 3.77%, Consumer Staples: 3.45%, and finally Telecom: 1.66%.
From March 2023 to date, the index has shown a sideways movement set on the same downward and upward milestones as its counterparts, with a high of 2,457.00 points still far from being reached. At the moment, it is in a very strong resistance zone that was not overcome until October last year, being pierced on Monday without much strength and closing a price gap. The RSI is at 59.74%, indicating moderate strength from buyers. The checkpoint marks 1,764.71 points, with a more active trading zone around 1,800 points since 2022. We could expect a possible correction if the indices change trend to down and a push towards 2,351 points if the index maintains its strength.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
In particular, if we look at the performance of the Russell 2000, although it follows a similar trend to other long-term indices, its movement is more pronounced in the short term than the other three US indices. In today's premarket, it shows a decline of 0.05%, similar to the Dow Jones. This is due to the fact that U.S. mid-sized companies have a more productive rather than technological composition, a characteristic that generates greater volatility versus the large corporations of the major indexes. For example, the Russell 2000 was hit harder in 2020 than its counterparts.
The top 10 companies in the Russell 2000 are:
• Shockwave Medical: Healthcare
• Emcor Group Inc: Industrials
• Iridium Communications: Telecommunications
• Saia Inc: Industrials
• Apellis Pharmaceuticals: Healthcare
• Inspire Medical Systems: Healthcare
• Crocs Inc: Consumer Discretionary
• Texas Roadhouse Inc: Consumer Discretionary
• Kinsale Capital Group: Financials
• Prometheus Biosciences: Health Care
The average of all Russell 2000 companies is $2.951 billion in May 2023, with the top company valued at $10.383 billion and small companies in the $200 million range. The index weights average as follows:
Industrials: 17.50%, Health Care: 16.81%, Financials: 14.86%, Consumer Discretionary: 13.90%, Technology: 10.64%, Energy: 6.74%, Real Estate: 6.42%, Basic Materials: 4.24%, Utilities: 3.77%, Consumer Staples: 3.45%, and finally Telecom: 1.66%.
From March 2023 to date, the index has shown a sideways movement set on the same downward and upward milestones as its counterparts, with a high of 2,457.00 points still far from being reached. At the moment, it is in a very strong resistance zone that was not overcome until October last year, being pierced on Monday without much strength and closing a price gap. The RSI is at 59.74%, indicating moderate strength from buyers. The checkpoint marks 1,764.71 points, with a more active trading zone around 1,800 points since 2022. We could expect a possible correction if the indices change trend to down and a push towards 2,351 points if the index maintains its strength.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.