Small Caps & Ishares Russell 2000 (AMEX: IWM) Will Suffer Most In Correction Says Market Timer Frank Kollar
May 1, 2007 (FinancialWire) (By Frank Kollar)
Shares of exchange-traded fund Ishares Russell 2000 (AMEX: IWM) took a 2.1% hit on Monday as the entire stock market suffered a late day plunge. Ishares Russell 2000, with positions in such heavily traded stocks as Plains Exploration & Production Company (NYSE: PXP), Joy Global Inc (NASDAQ: JOYG) and Crown Holdings (NYSE: CCK), is the weak link in current market.
The Russell 2000 Index (RUT) and Ishares Russell 2000 have been lagging the rest of the market for months. With the Dow Industrials - DJIA at new all time highs, the S&P 500 Index – SPX and Nasdaq Composite Index – COMPQ at new rally highs, the small caps barely made it to new highs last week and then fell Friday .
Last Friday we issued an ALERT calling for an imminent market pullback. In this correction, Ishares Russell 2000 is likely to suffer larger percentage declines than big-cap and mid-cap trading vehicles.
Fibtimer.com (http://www.fibtimer.com) also holds a position in Ishares Russell 2000 in its ETF Timer Portfolio.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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