154.10 +0.09 (0.06%)
After hours: 7:21PM EDT
|Bid||154.04 x 4000|
|Ask||154.08 x 1000|
|Day's Range||152.26 - 155.14|
|52 Week Range||125.81 - 173.39|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.23|
|Expense Ratio (net)||0.19%|
From the YFi Interactive touch screen, Yahoo Finance's Jared Blikre joins Alexis Christoforous to break down the latest Bank of America Merrill Lynch Global Fund Manager Survey showing a flight into bonds and cash, and the biggest underweight in equities since March, 2009. “FMS investors have not been this bearish since the Global Financial Crisis, with pessimism driven by trade war and recession concerns,” said Michael Hartnett, chief investment strategist.
European Central Bank President Mario Draghi turned ultra-dovish in a speech in Portugal on Tuesday. Is this a motivation for Federal Reserve Chairman Jerome Powell and his cohorts to cut interest rates as they meet this week? President Trump on Tuesday blasted Draghi because stimulus in Europe means a lower euro versus the dollar, giving an edge to European companies in their exports to the U.S. On the other hand, the U.S. stock market is encouraged by Trump’s tweet of a “very good” phone call with President Xi of China and the news of an extended meeting with him at the G20.
Small-cap stocks, as represented by the iShares Russell 2000 ETF (NYSEARCA:IWM), are down about 13% from their all-time highs set in August 2018, while still being higher by about 13% year-to-date. Looking at the IWM ETF through the lens of technical analysis, it is now up against a well-defined area of resistance, which allows traders to place well-defined shorts for a trade.Source: Shutterstock As I often discuss in this column, the more clearly defined a trader's risk is, the better the odds he or she actually sticks to these rules. My trade idea for the Russell 2000 exchange-traded fund qualifies as a trade where risk is very well defined. IWM ETF Charts Click to EnlargeInvestorPlace - Stock Market News, Stock Advice & Trading TipsFor some perspective let's first look at the multi-year weekly chart of the IWM ETF.Here we see that for the most part, the index has nicely respected its upward sloping channel. In late December 2018, the ETF bounced off the lower end of the trend and just a few weeks ago, it rejected the upper end of this trend. From this perspective, almost regardless of how potentially bullish an outcome for stocks may be, the chances are that the IWM ETF will be capped within the confines of this trend channel. * 7 High-Quality Cheap Stocks to Buy With $10 But the Russell 2000 isn't just 13% off its all-time highs, it has also dramatically under performed the S&P 500 over the past nine months. See the bottom part of the chart, i.e., the orange line, which represents this relative under performance. Click to EnlargeMoving on to the daily chart we see that around the $155 area IWM has a layer of technical resistance. This layer is made up of some horizontal price resistance, but more importantly, it is where the 50-, 100- and 200-day simple moving averages all converge. While this by no means indicates that it is a guarantee the index will remain below, i.e., absolutely respect this area as technical resistance, it is a very clearly defined price level that traders can lean against for shorts.As usual, the best part of this trade idea is not how much we could possibly make if the IWM ETF drops, but how clearly defined our stop loss area is -- any push above $155 is an automatic stop loss.This short could be entered with the IWM trading around $150 - $153, using a downside target of $145.Get FREE ACCESS to Serge's renowned Stock Market Scanner with actionable trade ideas. Get it HERE. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Trade of the Day: Short the Russell 2000 IWM ETF appeared first on InvestorPlace.
Popular technology stocks have recently staged a rebound. But segmented money flows show the rally is suspect. Let’s examine the issue with the help of a chart. Chart Please click here for a chart showing money flows in 11 popular tech stocks.
New research from Goldman Sachs suggests active managers could benefit from trading ETFs in the place of individual stocks when liquidity dries up.
The markets continued their downward slide last week as trade tensions escalated with a possible new tariff on Mexico that could lead to a two-front trade war, which no one wants. There were few areas of strength, with autos and energy among the sectors hurt the most late in the week by a new trade tiff with Mexico. It is hoped cooler heads prevail, though it does appear Mexico might be willing to enforce migration on its side of the border more effectively in light of this new threat.
As investors have recently eschewed some riskier market segments, the iShares Russell 2000 ETF (IWM) , the largest ETF tracking smaller companies, is lower by almost 1% this month, but that does not mean investors should IWM and rival small-cap ETFs in June. Actually, historical data indicate the opposite is true. Good news: historical data confirm IWM is a winner in June, a month not usually known for being kind to stocks.
Earnings of the S&P 600 are down 18.3% year over year so far on 3.1% revenue growth, with 57.1% beating EPS estimates and 56.3% surpassing top-line expectations.
Profit taking has been prevalent, but U.S. economic strength and the market's tendency to bounce inspire continued bullishness.