AMEX:IWM Resistance Levels: There is a significant resistance level at around 224.02. The price needs to close above this level to confirm a breakout. Another resistance level is at approximately 233.64. Support Levels: The immediate support level is the trendline, which has been acting as a resistance until now. This trendline is likely to act as a...
The SPY and IWM have completely diverged. On the back of rate cut expectations, many investors are piling back into the junk and high beta names. A clear relative strength move has occurred in small caps: IWM Whilst the megacap stocks have been sold off. The SPY sliced through the 50 MA yesterday and cofirmed the break below. Although this is typically...
The Russell 2000 trailed the S&P 500 significantly in 2023, gaining about 17% compared to a gain of about 24% for the large cap index. That underperformance has spilled over into 2024. As of July 10, 2024 the Russell 2000 YTD is about Zero compared to a 17.75% gain in the S&P 500 (SPX) and 23.50 gain in Nasdaq Composite Index (IXIC). By the way, that valuation...
Market Forecast (Updated 07/21/2024) **SPX**-Rotation into small caps and industrial stocks continue, which led to more sell off in SPX We have a lot of earnings coming up this week so that can shift the direction of the market as well. Next resistance $5655and $5688 Next support $5521 and 5428 Weekly Sentiment = Bearish **Chart Analysis:** () **Dollar...
... for a 191.21 debit. Comments: I'm not quite ready to move out to the September monthly due to its duration, so doing a little something different here to attempt to milk a smidge more out of August. After having taken off my longer-dated position in profit, re-upping in 45 DTE with the short call at about the exact same delta it was at previously (around...
The yield curve invesrion remains in place for the longest historical inversion run. This cant be good right? History shows once the spread between the 10 & 2 corrects back to normal / un-inverts you usually get a sell signal in the market. We are observing a massive bullish wedge pattern unfolding and looks poised at any moment to breakout. The un-...
The Russell 2000 trailed the S&P 500 significantly in 2023, gaining about 17% compared to a gain of about 24% for the large cap index. That underperformance has spilled over into 2024. Year-to-date, the Russell 2000 is about 2% compared to a 7% gain in the S&P 500. By the way, that valuation measures make the small cap Russell 2000 index much more compelling when...
... for a 187.46 debit. Comments: (Late Post). Sold the -75 call against a one lot to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 187.46. Max Profit: 3.54 ($354) ROC at Max: 1.89% ROC at 50% Max: .94% Will generally look to take profit at 50% max on the entire setup (stock +...
Small caps still look like good long-term play despite Russell 2000 backlog in the first half of 2024 vs Large Cap S&P500 Index (SPX) and tech-heavy Nasdaq Composite (IXIC) and Nasdaq-100 indices (SPX). As of July 10, 2024 the Russell 2000 YTD return was about Zero compared to a 17.75% gain in the S&P 500 (SPX) and 23.50% gain in Nasdaq Composite Index...
TVC:DJI NASDAQ:QQQ AMEX:IWM NASDAQ:NDX SP:SPX Rising wedge pattern forming in S&P 500.....big banks price target forecast for fiscal year 2024 were $4800-$5600 ....eventually hitting all PT mid 2024......S&P500 fell last week and DJI rose last week with 4% percentage difference which means investors or big money booking profits from tech and large...
Market Forecast (Updated 07/14/2024) **SPX**- As we predicted last week, market was bullish, We also saw lower than expect CPI and PPI data which pushed the chance of a rate cut to 88% in September. Due to the chance of rate cut actually happening, we are seeing rotation into small cap stocks and industrials. Next resistance $5626 and $5655 Next support $5490...
of a continuation inverse head & shoulders these projections are IMHO likely to be the final nail in the coffin for this massive bull run one of the complaints from Analysts is the lack of breath in the market well when the russell reaches these projections these analysts will likely claim victory and say see NOW we have a real bull market which is when you...
Today's Carryover pattern should be very interesting. Do we carry over the deep selling pressure from yesterday or do we reject the downward price trend and revert back to the previous bullish trending. I expect a reversion back to the bullish trending setting up today. If the overnight price action were to continue downward today, the emotional selling pressure...
WOW what a phenomenal day! There was HUGE volume on the TVC:RUT AMEX:IWM & it closed near the highs of the day!!! NASDAQ:NDX on the other hand had heavier than normal volume and closed near the lows of the day Add to the misery, bearish engulfing was formed today. NASDAQ:QQQ Did we just see the initiation of money rotation?
Bullish divergence is spotted on the IWM/QQQ chart, IWM is being dragged down because of Fed hawkish comments and KRE underperformance. This is a weekly chart so we need time for this to play out, I remain bullish on IWM for the remainder of the year, even just 1% of inflows from QQQ into IWM could make it go up 10%.
The long tech trade seems to be coming to an end here. If we continue to reject this trendline, then I think the Mag 7 and Nasdaq trade could be over and you'll be better off longing "value" going forward. On an individual stock basis, there's a number of names that look to be forming bottoms in the value space and a number of stocks (META, NFLX, NVDA, etc.) that...
Today's Gap Up/Higher pattern in Trend mode may provide a strong price rally attempt after yesterday's somewhat non-existent Momentum Rally pattern. I believe the lack of price movement yesterday resulted from markets waiting for Powell's comments and not wanting to get too far ahead of themselves. Today, I believe the markets will resume trending to support the...
PRTS is a car parts online seller. During covid boon, the company grew agressively, so is their share price and market cap. Since then, not much dilution, 600m NR, P/S is below 0.1!! Issue is profitability, the company does not have a debt issue, current cash and current profitibability and FCF can last years so no dilution to be expected. In July, they started...