In summary, it looks like the Russell 2000 index entered a new bear market in July-August 2011. The massive "santa clause rally" we had last year now clearly appears as a retracement to the bull market highs. We now have new long term bearish signals and a perfect head n shoulders top to boot. We could see a cross of death (50 dma cross below 200 dma) in weeks. A rally above $78 would bring this thesis into question. The first target is $71, then $60. As a reminder, I think the Russel 2000 small cap index (ETF: IWM) is a leading indicator for the entire US stock market.
Disclosure I am short TNA
Saturday, June 16, 2012
Saturday Rock Blog: Beautiful Disaster or How Long Term Trends Change (IWM Weekly)
In summary, it looks like the Russell 2000 index entered a new bear market in July-August 2011. The massive "santa clause rally" we had last year now clearly appears as a retracement to the bull market highs. We now have new long term bearish signals and a perfect head n shoulders top to boot. We could see a cross of death (50 dma cross below 200 dma) in weeks. A rally above $78 would bring this thesis into question. The first target is $71, then $60. As a reminder, I think the Russel 2000 small cap index (ETF: IWM) is a leading indicator for the entire US stock market.
Disclosure I am short TNA
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2 comments:
I bought some IWM $76 puts.
Very impressive blog, and I am here to share something about triangle as -The similar triangles are also called as equiangular triangle. This is because in equilateral triangles, both the triangles have equal angles. The similar triangles have common shape but different sizes.
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