What Happened To Small Caps? Asks Market Timer Frank Kollar
September 14, 2007 (FinancialWire) (By Frank Kollar)
After a yearlong rally during which small caps lagged terribly while the major big cap indexes such as the Dow Industrials (DJIA) and S&P 500 Index (SPX) reached all-time highs, small caps are still under performing during the recovery from the July-August correction.
Using the ISHARES Russell 2000 ETF (NYSE: IWM) to measure performance, the small caps remain mired near their correction lows and during Thursday’s triple digit Dow rally, IWM managed to close with only a fractional gain.
Where to next? Traders should stay away from small caps until they show strength relative to the rest of the stock market. From the look of current charts, that time may be well in the future.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy currently has a position in IWM.
Follow your strategy and adhere to money management rules to protect capital. If you do not have money management rules, give FibTimer.com (http://www.fibtimer.com) a call. The surest way to lose money in the stock market is to trade without a plan.
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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any security. Opinions are based on historical research and data believed reliable,
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