A couple things happened on Friday that (judging by history) make me think we could see more short-squeezes this week: 1) Borrow rates spiked for some popular shorts (often a sign of shorts pressing). 2) Legit small-cap growth stocks (some heavily shorted, some not) sold off en masse in tandem with heavily-shorted junk ($羅素2000成長股指數ETF-iShares (IWO.US)$was down 1.2%) . When this has happened in the past, these stocks have often later moved higher in tandem. Throw in rates fallin...
Last week,$羅素2000指數主連(2412) (RTYmain.US)$gained 6% (top right as highlighted in yellow) and was the best performer among the 4 major US indices, followed by$納斯達克100指數主連(2412) (NQmain.US)$,$標普500指數主連(2412) (ESmain.US)$and$道瓊斯指數主連(2412) (YMmain.US)$. Both$微型羅素2000指數主連(2412) (M2Kmain.US)$and$道瓊斯指數 (.DJI.US)$just broke out from the re-accumulation structure while$標普500指數 (.SPX.US)$and Nasdaq travels within a well define up channel and currently hit the channel's overbought line. Would we see a rotation from the S&P 500 and$納斯達克綜合指數 (.IXIC.US)$to the Russell and the Dow Jones? Let's focus on the daily chart of the Russell 2000 index futures (RTY) as shown below: An apex formation has formed since July 2021 and there is something unusual about this triangle pattern. Normally, while the price is consolidating within the triangle (forming lower high and higher low), we will notice decreasing of the volume together with the contraction of the volatility (e.g. the price spread of the candles are getting smaller from left to right hand side of the triangle). In this case, despite the volatility is getting lower, the volume is expanding on every down wave, suggesting lots of selling. Yet, what's the results? A higher low throughout from Aug till Nov 2021. This suggests that there was supply absorption going on while the selling happened. This is very constructive for a bullish scenario because the "strong hands" step in to support the price on every reaction and to scoop up the bargain. At the end of Oct 2021, there is an attempt to breakout of both the triangle and the horizontal resistance at 2310 followed by a shallow pullback and reversal, which marks the last point of support (LPS) of the accumulation structure before the sign of strength rally breaks above the structure. The supply level is especially low from the previous reaction suggests that the absorption is completed and ready to markup. As heavy supply has been absorbed within the triangle pattern, we might not expect a backup action coming back to test the axis line where the resistance-turned-support around 2310–2370, instead the backup action could happen at higher ground. The breakout of the Russell 2000 gives the first confirmation of the scenario of possible rotation from big cap stocks to small cap stocks. A Quick Guide to Get Exposure to Small-Caps The easiest way to participate the small caps without worrying about stock picking is via the ETFs. Feel free check out$iShares羅素2000指數ETF (IWM.US)$,$羅素2000成長股指數ETF-iShares (IWO.US)$,$羅素2000價值股指數ETF-iShares (IWN.US)$,$SPDR標普600小盤ETF基金 (SLY.US)$,$SPDR S&P 600 Small Cap Value ETF (SLYV.US)$,$SPDR S&P 600 Small Cap Growth ETF (SLYG.US)$. If you want to take it to the next level to beat the ETF, just explore the individual stocks within the those ETFs and pick those that outperform the market, sector and group with accumulation structure and wait for the right trade setup that suits you. For example,$MARA Holdings (MARA.US)$just about to complete the Wyckoff accumulation structure and is a potential candidate to ride on the strong trend of$比特幣ETF-Grayscale (GBTC.US)$.
Stocks drop as growth concern lingers; oil falls U.S. stocks dropped from all-time highs, with shares of small companies leading declines, and Treasuries gained on an uptick in growth concerns. The$標普500指數 (.SPX.US)$and$道瓊斯指數 (.DJI.US)$fell after setting closing records Tuesday. The tech-heavy$納斯達克100指數 (.NDX.US)$set an intraday record before closing barely in the green with$谷歌-A (GOOGL.US)$,$亞馬遜 (AMZN.US)$and$特斯拉 (TSLA.US)$rallying.$Robinhood (HOOD.US)$slumped after missing revenue estimates. The$羅素2000成長股指數ETF-iShares (IWO.US)$slumped 1.9%, the biggest decline since late September. El Salvador 'buys the dip' and acquires another 420 bitcoins El Salvador bought another 420 Bitcoins to take advantage of its recent price drop, President Nayib Bukele said in a post on Twitter. The country has bought a total of 1,100 of the coins since Bukele announced the first purchases on Sept. 6. Alphabet on verge of $2 trillion valuation after earnings surge $谷歌-A (GOOGL.US)$is within striking distance of reaching a $2 trillion valuation for the first time after a strong earnings report sent its shares soaring. The Google-parent's shares rose to a record on Wednesday with an advance of as much as 6.7%. The gains added more than $110 billion to Alphabet's market valuation, which now stands at about $1.97 trillion, according to Bloomberg data. Spotify ad business boosted by podcasts $Spotify Technology (SPOT.US)$'s big bet on podcasts appears to be paying off. Third-quarter advertising revenue increased 75% from a year earlier, and user growth picked up after a lull earlier this year. Spotify is now the top podcast platform in the U.S. by listeners, according to Edison Research, passing incumbent Apple Podcasts in the largest market. Paying subscribers, its most lucrative type of customer, also climbed 19% to 172 million, in line with the company's guidance range. Hertz links up with Uber to offer 50,000 Tesla rentals $Hertz Global Holdings, Inc. (HTZZ.US)$said Wednesday it is linking up with$優步 (UBER.US)$to make 50,000$特斯拉 (TSLA.US)$available in Uber's ride-sharing network by 2023, the latest in the rental-car company's efforts to build momentum postbankruptcy. The Teslas that Hertz plans to add to the Uber network will come from the initial 100,000 vehicle order and future orders as the program grows. Elon Musk's net worth approaches $300 million Musk's net worth is approaching $300 billion, putting him tens of billions of dollars ahead of the rest of the world's richest people. Remember dogecoin? A rival 'meme token' just hit a record high and is close to overtaking it Shiba inu has surged 30% in the last 24 hours, according to data from CoinGecko, hitting a record high above $0.00006. With a market capitalization of more than $29 billion, shiba inu is now the 11th-largest cryptocurrency. Shiba inu is a so-called meme token that bills itself as a "dogecoin killer." Profit falls at GM and Ford as chip shortage takes toll The two largest U.S. auto makers reported steep drops in third-quarter profit as chip shortage dented factory output, and each said the problem would leave dealership lots nearly bare well into 2022. $通用汽車 (GM.US)$, which cut vehicle shipments in North America by nearly half in the July-to-September period, said Wednesday that its net profit dropped 40% in the third quarter, while$福特汽車 (F.US)$reported a 23% decline in net income compared with the same year-ago quarter. Source: Bloomberg, WSJ, CNBC
羅素2000成長股指數ETF-iShares股票討論
1) Borrow rates spiked for some popular shorts (often a sign of shorts pressing).
2) Legit small-cap growth stocks (some heavily shorted, some not) sold off en masse in tandem with heavily-shorted junk ( $羅素2000成長股指數ETF-iShares (IWO.US)$ was down 1.2%) . When this has happened in the past, these stocks have often later moved higher in tandem.
Throw in rates fallin...
Source: Bloomberg
Key Points
- Why there is heavy accumulation in Russell 2000 ( $iShares羅素2000指數ETF (IWM.US)$ ) via the apex formation.
- How to anticipate if a potential rotation will happen from $標普500指數 (.SPX.US)$ , $納斯達克綜合指數 (.IXIC.US)$ into $道瓊斯指數 (.DJI.US)$ and $微型羅素2000指數主連(2412) (M2Kmain.US)$
- Why the indices could be in a vulnerable condition and what to expect.
- Using Wyckoff's law — efforts vs results to interpret the supply absorption and judge the timing of the up swing.
- Sector ETF to focus: $工業指數ETF-SPDR (XLI.US)$ $WilderHill清潔能源ETF-Invesco (PBW.US)$ $美國房屋建築業ETF-iShares (ITB.US)$ and watch out for the extensive run in $半導體指數ETF-VanEck (SMH.US)$
- For small cap, feel free to explore $羅素2000成長股指數ETF-iShares (IWO.US)$ $iShares羅素2000指數ETF (IWM.US)$ $羅素2000價值股指數ETF-iShares (IWN.US)$
Watch the video below
Both $微型羅素2000指數主連(2412) (M2Kmain.US)$ and $道瓊斯指數 (.DJI.US)$ just broke out from the re-accumulation structure while $標普500指數 (.SPX.US)$ and Nasdaq travels within a well define up channel and currently hit the channel's overbought line. Would we see a rotation from the S&P 500 and $納斯達克綜合指數 (.IXIC.US)$ to the Russell and the Dow Jones?
Let's focus on the daily chart of the Russell 2000 index futures (RTY) as shown below:
An apex formation has formed since July 2021 and there is something unusual about this triangle pattern. Normally, while the price is consolidating within the triangle (forming lower high and higher low), we will notice decreasing of the volume together with the contraction of the volatility (e.g. the price spread of the candles are getting smaller from left to right hand side of the triangle).
In this case, despite the volatility is getting lower, the volume is expanding on every down wave, suggesting lots of selling. Yet, what's the results? A higher low throughout from Aug till Nov 2021. This suggests that there was supply absorption going on while the selling happened.
This is very constructive for a bullish scenario because the "strong hands" step in to support the price on every reaction and to scoop up the bargain.
At the end of Oct 2021, there is an attempt to breakout of both the triangle and the horizontal resistance at 2310 followed by a shallow pullback and reversal, which marks the last point of support (LPS) of the accumulation structure before the sign of strength rally breaks above the structure. The supply level is especially low from the previous reaction suggests that the absorption is completed and ready to markup.
As heavy supply has been absorbed within the triangle pattern, we might not expect a backup action coming back to test the axis line where the resistance-turned-support around 2310–2370, instead the backup action could happen at higher ground.
The breakout of the Russell 2000 gives the first confirmation of the scenario of possible rotation from big cap stocks to small cap stocks.
A Quick Guide to Get Exposure to Small-Caps
The easiest way to participate the small caps without worrying about stock picking is via the ETFs. Feel free check out $iShares羅素2000指數ETF (IWM.US)$ , $羅素2000成長股指數ETF-iShares (IWO.US)$ , $羅素2000價值股指數ETF-iShares (IWN.US)$ , $SPDR標普600小盤ETF基金 (SLY.US)$ , $SPDR S&P 600 Small Cap Value ETF (SLYV.US)$ , $SPDR S&P 600 Small Cap Growth ETF (SLYG.US)$ .
If you want to take it to the next level to beat the ETF, just explore the individual stocks within the those ETFs and pick those that outperform the market, sector and group with accumulation structure and wait for the right trade setup that suits you. For example, $MARA Holdings (MARA.US)$ just about to complete the Wyckoff accumulation structure and is a potential candidate to ride on the strong trend of $比特幣ETF-Grayscale (GBTC.US)$ .
U.S. stocks dropped from all-time highs, with shares of small companies leading declines, and Treasuries gained on an uptick in growth concerns.
The $標普500指數 (.SPX.US)$ and $道瓊斯指數 (.DJI.US)$ fell after setting closing records Tuesday. The tech-heavy $納斯達克100指數 (.NDX.US)$set an intraday record before closing barely in the green with $谷歌-A (GOOGL.US)$, $亞馬遜 (AMZN.US)$ and $特斯拉 (TSLA.US)$ rallying. $Robinhood (HOOD.US)$ slumped after missing revenue estimates. The $羅素2000成長股指數ETF-iShares (IWO.US)$ slumped 1.9%, the biggest decline since late September.
El Salvador 'buys the dip' and acquires another 420 bitcoins
El Salvador bought another 420 Bitcoins to take advantage of its recent price drop, President Nayib Bukele said in a post on Twitter.
The country has bought a total of 1,100 of the coins since Bukele announced the first purchases on Sept. 6.
Alphabet on verge of $2 trillion valuation after earnings surge
$谷歌-A (GOOGL.US)$ is within striking distance of reaching a $2 trillion valuation for the first time after a strong earnings report sent its shares soaring.
The Google-parent's shares rose to a record on Wednesday with an advance of as much as 6.7%. The gains added more than $110 billion to Alphabet's market valuation, which now stands at about $1.97 trillion, according to Bloomberg data.
Spotify ad business boosted by podcasts
$Spotify Technology (SPOT.US)$'s big bet on podcasts appears to be paying off.
Third-quarter advertising revenue increased 75% from a year earlier, and user growth picked up after a lull earlier this year. Spotify is now the top podcast platform in the U.S. by listeners, according to Edison Research, passing incumbent Apple Podcasts in the largest market. Paying subscribers, its most lucrative type of customer, also climbed 19% to 172 million, in line with the company's guidance range.
Hertz links up with Uber to offer 50,000 Tesla rentals
$Hertz Global Holdings, Inc. (HTZZ.US)$ said Wednesday it is linking up with $優步 (UBER.US)$ to make 50,000 $特斯拉 (TSLA.US)$ available in Uber's ride-sharing network by 2023, the latest in the rental-car company's efforts to build momentum postbankruptcy.
The Teslas that Hertz plans to add to the Uber network will come from the initial 100,000 vehicle order and future orders as the program grows.
Elon Musk's net worth approaches $300 million
Musk's net worth is approaching $300 billion, putting him tens of billions of dollars ahead of the rest of the world's richest people.
Remember dogecoin? A rival 'meme token' just hit a record high and is close to overtaking it
Shiba inu has surged 30% in the last 24 hours, according to data from CoinGecko, hitting a record high above $0.00006. With a market capitalization of more than $29 billion, shiba inu is now the 11th-largest cryptocurrency. Shiba inu is a so-called meme token that bills itself as a "dogecoin killer."
Profit falls at GM and Ford as chip shortage takes toll
The two largest U.S. auto makers reported steep drops in third-quarter profit as chip shortage dented factory output, and each said the problem would leave dealership lots nearly bare well into 2022.
$通用汽車 (GM.US)$, which cut vehicle shipments in North America by nearly half in the July-to-September period, said Wednesday that its net profit dropped 40% in the third quarter, while $福特汽車 (F.US)$ reported a 23% decline in net income compared with the same year-ago quarter.
Source: Bloomberg, WSJ, CNBC
2021-07-10视频链接 欢迎订阅点赞分享,谢谢。
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