ISHARES Russell 2000,ETF,IWM,market timingJuly 14, 2010
Shares of the ISHARES Russell 2000 Index Fund ETF (NYSE: IWM) rose 3.1% in Tuesday’s July 13 stock market rally.
This was an excellent performance but we have concerns about this widely traded small cap ETF.
In trading on Monday, July 12, the stock market rose with a gain for the S&P 500 Index and Dow Industrials as well as the Nasdaq Composite, but IWM declined 1.1 %.
Through the preceding correction, when IWM lost over 20%, to the current rally; IWM is underperforming.
IWM remains beneath its 50-day moving average and just crossed above its 200-day moving average on Tuesday, July 12.
No rally lasts forever and when this current run ends, the underperforming IWM will likely drop faster and further than the broad market.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in ISHARES Russell 2000.
Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in ISHARES Russell 2000.