Ishares Russell 2000 Fund (NYSE: IWM) Lags in Rally

Mar. 23, 2011 5:12 PM ETIWM
TimerFrank profile picture
TimerFrank's Blog
47 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Contributor Since 2009

Frank started market timing in 1982 when the Federal Reserve cut interest rates and sparked the 1980’s bull rally. Realizing that this rally could have been forecasted, he began to search for indicators which had similar forecasting ability. Within a year, his first newsletter was launched, “Growth Fund Strategies Report” which used a market timing strategy consisting of changes in interest rates, Fed changes, Market breadth and market price (using the S&P 500 Index). The strategy was hugely successful and issued a major sell signal on September 10th, 1987, just five weeks before the market crash on October 19th. In 1996 his first market timing website was launched. “Market Timer Report” used a refined strategy to market time the general U.S. stock market, and followed a variety of growth stock mutual funds. It was geared towards more conservative mutual fund investors and averaged only one to two switches a year. By the end of the 1990s, the strategy was refined to one that followed market trends instead of using interest rates and breadth on which to base market timing decisions. Because trend following never missed major trends trends, and those trends which failed resulted in minimal gains or losses, it became apparent that this was the better way to profit in what was quickly becoming a hugely overbought stock market. The bear market of 2000 through 2002 generated substantial “bearish position” profits by following trends and Frank began using Fibonacci support and resistance levels to look forward and help identify trends. In 2002 we changed the name of our timing service to FibTimer.com (live link) to better identify ourselves to prospective subscribers. We also began the process of adding new timing strategies, using our trend trading systems to develop both aggressive market timing strategies as well as conservative market timing strategies. In time we added sector fund timing, gold fund timing, bond fund timing and small cap fund timing. In 2003 we expanded to ETF timing strategies as well as starting a portfolio of individual stocks. All using our trend following systems to time the markets. Frank is currently the editor and chief market analyst of FibTimer.com, as well as president of Market Timing Strategies, Inc.

March 24, 2011

Shares of the small cap ETF Ishares Russell 2000 Fund (NYSE: IWM) rose a small fraction in Wednesday’s March 23 stock market advance.

IWM closed at $81.30 three days ago but has been unable to surpass this level since, closing at $81.12 on Wednesday.

When small caps lag behind the big caps, and in this case also the Nasdaq 100 tech issues, it is something to keep an eye on. A yellow flag.

Often the small caps move in the next direction before the rest of the market and that points to a possible reversal from current levels and a test of the prior correction lows at about $78 a share.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Ishares Russell 2000 Fund.

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.