Looking for a Step Back
Well we finally got the kind of rally I'd been looking for -- one that didn't die midday. If I had to complain about one factor, it would be that the Russell 2000 lagged in a big way. You see, when something is so obviously failing to confirm the larger move in the market, too many folks tend to notice it. As longtime readers know, I prefer that old adage, "If it looks great, it's too late" -- and we did not have that with the Russell lag.
Thursday was also the first time the Russell has underperformed the S&P 500 since late December. We'll have to see if there is any follow-through here -- but, as you can see, when the ratio ticks up from this area, the S&P tends to be closer to a high than to a low. I had thought the ratio would get under 1.65 on this move, and it has only reached 1.66 so far....301 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.