Poor Prospects for ISHARES Russell
2000 ETF (NYSE: IWM) Says Market Timer Frank Kollar
July 8, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ISHARES Russell 2000 Index Fund ETF (NYSE:
IWM) rose some 3% in Wednesday’s strong stock market
rally.
But while they performed well this day, they were unable
to close higher than the prior day’s intra-day highs.
If this was a breakout rally from the long correction,
it lacked a breakout.
Add to this the poor performance on Tuesday, July 6 when
the stock market closed with a gain and IWM closed deeply
in the red, IWM is underperforming.
IWM has declined 21% from peak to trough in this correction
which puts it in bear market territory, at least for the
small cap sector.
IWM remains below its 50-day moving average as well as
its 200-day moving average. We would be hesitant to consider
a bullish trade in this ETF until IWM closes above that
200-day average currently at $63.81.
The Fibtimer.com (http://www.fibtimer.com)
ETF Timing Strategy holds a position in ISHARES Russell
2000.
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.
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.
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but there is no guarantee that future results will be profitable. |
