US Small Caps Plunge To 30-Month Lows Into Bear Market
The first week of July 2013 was the last time the Russell 2000 traded at these levels. That is 30 months of buy-and-hold for no return. Despite the constant clammer from "Small Cap fund managers" that they are the plaxce to be for protection against a soaring USD (since they are dominantly domestically focused), it seems the fact that small caps are much more sensitive to credit market conditions is the real reason and that market is carnaging.
Russell 2000 is down 22% from the highs... in bear market territory...
And here's why...
(2 votes)
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Plunge! What did you get your market order in at?
Plenty of support for the SP500 at 1867.
Got RUT at 1023 is my guess.
My guess is whatever level it is at 3:30
Yellen’s next fainting is scheduled for her next Humphrey Hawkins testimony. ;-)
Looney
I'm seeing some small cap mutual funds down over 50% from the past 2 years...The bear market didn't just start, it's either a 20 year buying opportunity or a 100 year black swan.
I'm a buyer of SP500 at around 1,000.
Wait for S&P 450, you won't be sorry.
Basically what we have here is LACK OF FAITH AND TRUST...but the STATE of our UNION is STRONG...the criminal elemet has been exposed for what it is...
Better luck next time Dana.
The funny thing about this drop is that there is no real dead cat bounce. No buyers to be found anywhere. Next stop (if it stops) 1000.
If it drops there are buyers. With no buyers it comes to a grinding halt. (/s)
True, but there is nobody out there saying "I have to own stocks"and the shorts are in no hurry to cover which you would normally see.
Agree, Just being my normal self. Good luck to all.
Teaching math the hard way.
pass the popcorn, Janet!
Seems we are back to where we were when Obama was hired, grasping at HOPE..
Not even Tyler's charts can put a bounce on the lows of the day. That's when you know things are getting serious.
I don't understand, the stock market is supposed to be correlated to the Fed Balance Sheet, so stocks should be flat. Oh wait, that balance sheet contains mortgages and bonds which just cratered in value due to higher interest rates.
tza has been a pretty easy swing the last week +
its not rocket science
Glad I cashed out of my small caps back in July! bwahahahahahahahahahahahhahahahahahahaha
Makes me look like a genius! :) But, wait, I AM a genius.
Now, if we can just pick the lows as well as the highs.......
Sucks to have to get two points dead on to be right in this game.
But Georgie Sore-ass gives good advice: I always sell too soon and I never buy at the bottom.
Georgie still holding BTU currently at 29c pre-split w/ basis approx 1.00/sh...
Shouldn't the market be breaking right about now?
I've been noticing a common theme here on the hedge, when equities and credit decouple it is a temporary occurance. Why don't the HFT algo programmers slow it down a bit and make an algo that will profit by recoupling them somehow? With my limited experience in programming it seems to me this could be done in an algorithmic fashion.
Probably because of the logic of a diminishing returns. The algos make money when they find an extreme and force it back to a normal. The scenario you suggest would mean that as soon as it started working, it wouldn't be an extreme any more (it would be getting closer to the norm.) So, most of the 'action' the algorithm would do would produce the least profit. To make it worse, at some point it becomes unprofitable because the transaction overhead will outweigh the gain as it approaches the normal. These algos are like ambush-bots. They spot a situation and kill it, sucking the profit out of it. (Or there are the spoof-bots, but they don't do that because it would be illegal. Oh wait...)
Sir...does this mean Ann Margaret's not coming?
INDU will become a small cap index when the worldwide deflationary commodity and debt and equity collapse comes into clearer focus for blurry-eyed investors and greedy money managers:
http://finviz.com/futures_charts.ashx?t=INDICES&p=m1