US OptionsDetailed Quotes
IWO250117C198000
- 85.80
- 0.000.00%
15min DelayClose Jan 17 16:15 ET
0.00High0.00Low
0.00Open85.80Pre Close0 Volume0 Open Interest198.00Strike Price0.00Turnover5511.37%IV-5.71%PremiumJan 17, 2025Expiry Date102.98Intrinsic Value100Multiplier-4DDays to Expiry0.00Extrinsic Value100Contract SizeAmericanOptions Type0.9500Delta0.0013Gamma3.51Leverage Ratio-464.7922Theta0.0000Rho3.33Eff Leverage0.0014Vega
iShares Russell 2000 Growth ETF Stock Discussion
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 ( $iShares Russell 2000 Growth ETF (IWO.US)$ 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 ( $iShares Russell 2000 ETF (IWM.US)$ ) via the apex formation.
- How to anticipate if a potential rotation will happen from $S&P 500 Index (.SPX.US)$ , $Nasdaq Composite Index (.IXIC.US)$ into $Dow Jones Industrial Average (.DJI.US)$ and $Micro E-mini Russell 2000 Index Futures(MAR5) (M2Kmain.US)$
- 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: $Industrial Select Sector SPDR Fund (XLI.US)$ $Invesco WilderHill Clean Energy ETF (PBW.US)$ $iShares US Home Construction ETF (ITB.US)$ and watch out for the extensive run in $VanEck Semiconductor ETF (SMH.US)$
- For small cap, feel free to explore $iShares Russell 2000 Growth ETF (IWO.US)$ $iShares Russell 2000 ETF (IWM.US)$ $Ishares Russell 2000 Value Etf (IWN.US)$
Watch the video below
Both $Micro E-mini Russell 2000 Index Futures(MAR5) (M2Kmain.US)$ and $Dow Jones Industrial Average (.DJI.US)$ just broke out from the re-accumulation structure while $S&P 500 Index (.SPX.US)$ 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 $Nasdaq Composite Index (.IXIC.US)$ 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 $iShares Russell 2000 ETF (IWM.US)$ , $iShares Russell 2000 Growth ETF (IWO.US)$ , $Ishares Russell 2000 Value Etf (IWN.US)$ , $SPDR S&P 600 Small Cap ETF (SLY.US)$ , $Spdr S&P 600 Small Cap Value Etf (Based On S&P Smallcap Value Index--Symbol--Cvk (SLYV.US)$ , $Spdr S&P 600 Small Cap Growth Etf (Based On S&P Smallcap 600 Growth Index --Symbol Cgk) (SLYG.US)$ .
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 $Grayscale Bitcoin Trust (GBTC.US)$ .
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 $S&P 500 Index (.SPX.US)$ and $Dow Jones Industrial Average (.DJI.US)$ fell after setting closing records Tuesday. The tech-heavy $NASDAQ 100 Index (.NDX.US)$set an intraday record before closing barely in the green with $Alphabet-A (GOOGL.US)$, $Amazon (AMZN.US)$ and $Tesla (TSLA.US)$ rallying. $Robinhood (HOOD.US)$ slumped after missing revenue estimates. The $iShares Russell 2000 Growth ETF (IWO.US)$ slumped 1.9%, the biggest decline since late September.
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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.
$General Motors (GM.US)$, 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 $Ford Motor (F.US)$ reported a 23% decline in net income compared with the same year-ago quarter.
Source: Bloomberg, WSJ, CNBC
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