Rty!
RTY Channel 7/18/2020This is the RTY at the 4 hour.
Which will the RTY do first? Fill the gap below or breakout to reach 1500?
The NQ has entered into a distribution phase. Tech stocks are going down and the money is heading to the non-tech stocks like financials and transportation. That's the RTY's bread of butter.
RTY may be getting reach for another surge. The question is: will it fill the gap first or go for 1500?
Personally, I would be happy to buy RTY at the 1420's.
RTY Breakout 7/15/2020Investors and traders are leaving tech to go for better value stocks: financials and transportation.
RTY rallied big time due to this shift in breadth. I am expecting a small pullback for RTY. However, from the looks of it, financials and transportation have entered into an uptrend channel.
If you're going to short, short very, very carefully. It's probably safer to long from major supports. Stock breadth is strengthening. Liquidity is strengthening. That is all pretty bullish. RTY is known for bouncing unexpectedly.
RTY in a BoxThis is RTY at the 4 hour view. I just said screw it with the channels for now until RTY makes up its mind.
For now, RTY is stuck in a volatility box. The dotted lines are tier I support/resistance. The dashed lines are tier II support/resistance.
You can swing trade while the price goes back and forth. At URTY/SRTY, that's still a 3-7% profit per day.
The fate of RTY really rests on the decision that XLF/FAS and XTN/IYT make. Financials and transportation make a bull market. Why? Because every business needs a bank account and ways to ship/receive products. Even tech needs its semiconductors and a bank for venture capital.
RTY (RUT FUtures) also overboughtRTY overbought as well but the market is too pumptarded to short today...
I think there's a fiarly good chance that the EUros will pump futures overnight.... might just have to sit in cash since I have no idea where this is headed.
If I do a trade I suppose it'll be GM calls, not small caps.
Next Threshold Target > $1540 for RTY!First off, please don't take anything I say seriously or as financial advice. As always, this is on an opinion based basis. That being said, given support momentum for RTY! and the recent high, the next bullish target it seems to be heading towards is the $1540 price point. Overall, I'm bullish and its looks to have some strong support metrics.
How the Russell 2000 indicates a correction in the S&P 500The Russell 2000 small cap index has been a prevalent lagger throughout the whole US equity rally into all-time highs. This is of concern for the health of the economy and the health of the S&P 500 index. The small-cap sector reacts the most to economic conditions and monetary policy, being the most affected if they cannot make new highs and are over 8.5% away from all-time highs we can infer that a stronger correction of 8-10% may occur in the S&P 500.
The S&P 500 is full of companies that have been artificially inflated by stock buy-backs and also monetary policy allowing for cheaper borrowing. There is a healthy retrace coming out to catch down to small caps since they have not relished in the strong economic conditions. Which presents another concern, is the economy that strong to begin with? If there is a correction, there could be more buyers in both the S&P 500 and Russell 2000 companies to help markets reach all-time highs yet again.