Apr 032013
 

Here are the previous and updated charts to the remaining 5 of the top 10 largest components in the Russell 2000 Index ($RUT).  The previous charts were from the original post made on March 22nd.  The first 5 charts were updated yesterday afternoon.

As always, this string of charts can be easily navigated by clicking on the first one to expand, then moving your cursor anywhere towards the right of center on the chart then clicking to advance to the next chart.  To zoom in or out, simply use the scroll wheel on your mouse or click, hold and drag the shaded triangle with dots in the bottom right corner of each expanded chart.

Mar 222013
 

These are the daily charts of the ten largest components of the Russell 2000 Index (posted in descending order by weighting).  Rarely have I even seen such screamingly bearish patterns on nearly every top component in a major, diversified index such as this.  Of course, these stocks are also extremely overbought on the daily, weekly and even monthly time frames.  Personally, I’m expecting much more than the run-of-the-mill 3-5% pullback that most pundits on the street are calling for.  As taking screen captures and annotating 10 chart takes a considerable amount of time, my notes on the charts are minimal but I believe that most of these patterns speak clearly.

Many of these charts have some horizontal or uptrend lines drawn below current prices which would act as downside targets, for those interested in shorting or even going long any of these stocks on a pullback (the former being my preference).  Although some of the stock have just recently broken below support, typically a key uptrend line, many are still within the patterns with some towards the top of the patterns/trendlines (resistance) while others are close to the lower uptrend lines (support).  Therefore, my short on the index at this time is what I refer to as an anticipatory trade (entering the trade early in anticipation of a likely breakdown).  However, more conservative or conventional traders might choose to wait until the majority of these stocks have broken below the support levels shown on these charts before taking a full position.

s2Member®
Web Analytics