Monday, May 23, 2022

#Russell2000 Review $IWM #Small Cap Stocks

Russell 2k Review
Trading noise, the random movement of price over the short term, does not control trends, cycles, and profits. The majority, an emotionally driven group focused solely on price, often interprets it as meaningful information. This leads to confusion, frustration, missed opportunities, and leaves the majority as the bag holders of trend transitions. The Evolution of the Trade helps investors stand separate from the majority.

Russell 2000 or small cap stocks' overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.

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The Series 2 $200 Nasdaq 100 Report 04/19/21, a series of videos, extends the discussion.

What is the Russell 2000's DI telling us?

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Today's pre market rally has awakened the bulls.

The Russell 2000's large bullish energy build supports it, or at least appears to support it.

While the bullish energy build (WA = 66%, DI = 94%, and DI2 =58%) should support stocks short-term, it doesn't close the door to additional selling. The Nasdaq 100, a leadership group for stocks since 2020, shows distribution. The Nasdaq 100's energy build, DI = -37% and DI = -3%, have not increased as price declined. Distribution (bearish positioning) within the mega technology stocks warns of additional selling ahead.

Russell 2000 DI

Accumulation of stocks in 1928 and 2008 also supported bullish calls.   That is, until prices fell down an elevator shaft.  The Series 1 $200 Corn Report 12/19/21, a series of videos, discusses the setup in terms of stock performance and inflation.  Inflation is the most important discussion. 

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The Matrix provides market-driven trend, cycles, and intermarket analysis.