July 20, 2015

Russell 2000 weakness could be sign of unhealthy market

I heard someone in the business media earlier today dismiss the Russell 2000's weakness as noise.

I'm not so sure that I agree.

The iShares Russell 2000 ETF  (IWM) is down 0.67% today and the S&P has flatlined, but the Nasdaq 100 is the "World's Fair." And the Nasdaq's sharp rise is occurring with more decliners than advancers.

Such narrowing of the market is typically an unhealthy condition -- but there's nothing "typical" about this market at all.

Position: Short SPY (small), QQQ (small)

via http://www.thestreet.com/story/13223088/1/gold-twitter-and-tech-stocks-doug-kass-views.html