Over the past 6 months, the iShares Russell 2000 ETF (NYSEARCA:IWM) has traded sideways despite U.S. large-cap stocks powering to new highs. The index appears to be tracing out a large topping pattern and I continue
IWM: Back Into The Sell Zone
Summary
- Over the past 6 months, the iShares Russell 2000 ETF has traded sideways despite U.S. large-cap stocks powering to new highs, with the growth segment weighing on the index.
- The index appears to be tracing out a large topping pattern and I continue to see a 50%+ peak-to-trough decline over the coming years.
- The IWM's recent bounce off of lateral support has taken the ETF back into the middle of its range, which provided another opportunity to establish short positions.
I am a full-time investor and owner of Icon Economics - a macro research company focussed on providing contrarian investment ideas across FX, Equities, and Fixed Income based on Austrian economic theory. Formerly Head of Financial Markets at Fitch Solutions, I have 15 years of experience investing and analysing Asian and Global markets.
Analyst’s Disclosure:I/we have a beneficial short position in the shares of IWM either through stock ownership, options, or other derivatives. 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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