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IWM: Still Consolidating; Hold Off For Now

May 02, 2021 10:29 AM ETiShares Russell 2000 ETF (IWM)7 Comments
Hale Stewart profile picture
Hale Stewart


  • The macroeconomic backdrop is positive.
  • IWM has enjoyed a very strong year-long rally.
  • Hold off on a new position until prices break through the mid-$230s.
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Whenever I look at an ETF that tracks a major index, I first look at the macroeconomic backdrop to determine if the economy is expanding or contracting. The former means the index is likely to rise; the latter means the index will probably

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Hale Stewart profile picture
Hale Stewart spent 5 years as a bond broker in the late 1990s before returning to law school in the early 2000s. He is currently a tax lawyer in Houston, Texas. He has an LLM in domestic and international taxation (MagnaCumLaude). He is the author of the book The Lifetime Income Security Solution. Follow me on Twitter at @originalbonddadYou can read his legal analysis on his law office's blog.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (7)

02 Jun. 2021
The IWM holds both value and growth. You probably won’t get a definitive breakthrough yet because of the growth stocks
FrankTrades profile picture
Very little technical strength here. The clear distribution from March into April **and** the absence of trading volume supporting the recent uptrend (lack of demand) make lower price a far more likely near-term future for IWM. I suggest you eye $TWM.
Hale.....nice article.

IWM looks to be in the perfect place to go short.

Oscillators turned lower last week, and failed to make new highs as SPY has.

Most importantly, all the Mega Techs had mediocre to bad performances after fantastic results last week.
Hale Stewart profile picture
@SouthBySE From a purely charting perspective, I'd agree with you. But the fundamentals are so strong that I'd be very cautious.
@Hale Stewart thanks for the straight forward analysis. I believe IWM is topping out but we will see.
@Hale Stewart Im looking at seasonality data here: the spx does poorly from May 15 to June 30. It breaks out July 1st for gains. I expect IWC and IWM to follow suit.
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