Bit of monthly perspective on the Russell

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  • on August 30th, 2013

Look at the difference between the trend on the Russell $IWM  between 2003 to 2008 and 2008 to 2013.   Note the blue rectangle and the Russell follows up the ascending monthly 20sma, very clean, like a stair step going up.   Compare this to the last few years, and especially how far we are in 2013 from the monthly 20sma (green line).

This type of move away from the 20sma begets volatility and randomness.   There’s just less of an edge to trade against for position traders.   As many have said (and apologized for the cliche) it’s currently a stock-pickers market.  And the chart explains the reason.

Click to enlargen

Chart20130830090306

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