Feb
Watch Small Cap for Trade Opportunity
Posted by
Monday, February 13th
The selling on Friday was a reaction to Greece and the signed austerity program by parliament over the weekend should put things back on even footing. Thus, we are have scanned the leadership prior to Friday’s activity and looked for what sold off the most. The scan results were interesting to say the least, but the best opportunity from the scans is the small cap stocks. IWM, iShares Russell 2000 Index ETF gives a broader view of the sector and the potential bounce of 2-4% if investors come back to the buy side bias.
Be patient with the entry and don’t force the trade. The entry fills the gap on the selling early Friday and puts the upside back at the previous high. Watch any gap opens on the trading day Monday. Let this trade develop and remember the objective is to make 1% on the move, if you give up too much on the open elevates the risk.
I like the small cap sector leadership to this point of the rally and expect it to resume the role as investors anxiety over Greece abates.
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