Of the four main indexes, the Nasdaq Composite, the Dow
Jones Industrial, the Standard & Poors 500 and the Russell 2000, the
Russell 2000 was the last to give a sell signal in mid-June and is now the
first to give a buy signal.
Russell 2000 Gives a
Buy Signal
Of the four main indexes, the Nasdaq Composite, the Dow
Jones Industrial, the Standard & Poors 500 and the Russell 2000, the
Russell 2000 was the last to give a sell signal in mid-June and is now the
first to give a buy signal.
Not a Bear and Not a
Bull
Unlike an
investment news publication printed this past week and a popular investment
guru claimed on his television show this week, there is not a day when the bull
market changes to a bear or a bear market changes to bull. But there’s a period
of consolidation and then pockets of the market begin to break to the upside or
to the downside. Small and Mid Sized Caps represented by the Russell 2000 have
now broken to the upside signaling the beginning of an uptrend in this one
class.
Pare your Shorts
It is
likely that the other indexes will follow suit and begin an uptrend but it’s
too early to jump in on the long side. Rather, begin to pare your short
positions and move your portfolio to a neutral weighting.