After a decent three-week rally, the Russell 2000 hit a ceiling just short of 1600 two weeks ago. It closed last week right on the 200-day. A convincing breach raises the odds of a test of support at 1450s. This … Continued
Small-caps get no love, even as large-caps rally to new highs. Non-commercials’ bearish position in Russell 2000 mini-index futures is near an 11-year high. At some point in the future, these holdings can provide a tailwind to the cash, as … Continued
The Russell 2000 closed Friday right at, or slightly past, crucial resistance. If bulls succeed in decisively take out this ceiling, risk-on sentiment can rise. Failure to do so can lead longs, who are sitting on handsome gains, to lock … Continued
On the eve of 1Q19 earnings season, the Russell 2000 sits right underneath short-term trend-line resistance. After this lies crucial 14-month horizontal ceiling. How non-commercials position themselves this week could leave clues as to how the index might fare in … Continued
IWM is breaking down, losing one after another support. Amidst this, the daily is grossly oversold. A bounce can happen – or not. This perhaps creates an opportunity for a non-directional trade involving options. Small-caps are taking it on the … Continued
Signs of fatigue are showing up in US equities. It began with large-caps, and now there are early signs it is spreading to small-caps as well as tech. The small-cap switch was turned on right after Donald Trump was elected … Continued
Small-business optimism remains near multi-decade highs. Small-cap stocks do not quite share this optimism. The NFIB optimism index rose two points month-over-month in January to 106.9, just a hair’s breadth away from November’s 107.5, which was a 34-year high. Optimism … Continued