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What If the Russell 2000 Stabilizes?
The bulls have shown serious mettle this year, and a shot past S&P 2000 is not out of the question.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The Russell 2000 (INDEXRUSSELL:RUT) is outperforming this morning.

As of the time I'm writing this, it's creeped into positive territory, up 0.2% while the S&P 500 (INDEXSP:.INX)is down 0.2%.

Much has been made of the Russell's weakness vs. the big caps in 2014, and incidentally, this would be a good time for the Russell to get back in gear.

I created a 5-year weekly chart showing spikes in Russell 2000 outpeformance vs. the S&P 500:


Click to enlarge

Following each big spike, the broader averages turned down.

What we haven't seen following 2013's monumental run is the major averages declining along with the Russell (as has happened in past years), mostly due to megacaps like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), as well as select sectors like biotech, holding us up.

One day does not a trend make, but it's worth asking -- if the Russell is stabilizing, having pulled back to something resembling performance parity with the S&P, does that mean we're reloaded for a shot through S&P 2000?

Remember, the bulls have shown a lot of mettle this year and we're just 3% off the highs. They're not broken and a resurgent Russell could embolden them.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
What If the Russell 2000 Stabilizes?
The bulls have shown serious mettle this year, and a shot past S&P 2000 is not out of the question.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The Russell 2000 (INDEXRUSSELL:RUT) is outperforming this morning.

As of the time I'm writing this, it's creeped into positive territory, up 0.2% while the S&P 500 (INDEXSP:.INX)is down 0.2%.

Much has been made of the Russell's weakness vs. the big caps in 2014, and incidentally, this would be a good time for the Russell to get back in gear.

I created a 5-year weekly chart showing spikes in Russell 2000 outpeformance vs. the S&P 500:


Click to enlarge

Following each big spike, the broader averages turned down.

What we haven't seen following 2013's monumental run is the major averages declining along with the Russell (as has happened in past years), mostly due to megacaps like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), as well as select sectors like biotech, holding us up.

One day does not a trend make, but it's worth asking -- if the Russell is stabilizing, having pulled back to something resembling performance parity with the S&P, does that mean we're reloaded for a shot through S&P 2000?

Remember, the bulls have shown a lot of mettle this year and we're just 3% off the highs. They're not broken and a resurgent Russell could embolden them.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
What If the Russell 2000 Stabilizes?
The bulls have shown serious mettle this year, and a shot past S&P 2000 is not out of the question.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

The Russell 2000 (INDEXRUSSELL:RUT) is outperforming this morning.

As of the time I'm writing this, it's creeped into positive territory, up 0.2% while the S&P 500 (INDEXSP:.INX)is down 0.2%.

Much has been made of the Russell's weakness vs. the big caps in 2014, and incidentally, this would be a good time for the Russell to get back in gear.

I created a 5-year weekly chart showing spikes in Russell 2000 outpeformance vs. the S&P 500:


Click to enlarge

Following each big spike, the broader averages turned down.

What we haven't seen following 2013's monumental run is the major averages declining along with the Russell (as has happened in past years), mostly due to megacaps like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), as well as select sectors like biotech, holding us up.

One day does not a trend make, but it's worth asking -- if the Russell is stabilizing, having pulled back to something resembling performance parity with the S&P, does that mean we're reloaded for a shot through S&P 2000?

Remember, the bulls have shown a lot of mettle this year and we're just 3% off the highs. They're not broken and a resurgent Russell could embolden them.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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