Random thoughts as I go through the week: As I was going over charts on Tuesday night, I wrote in my notebook that some of the leading themes were a bit stretched to the upside. Noting impactful for the long-term trend in the market or my view that we are in a cyclical bull market, just something to note. I like to think of it as a way to gauge how aggressive to be. Knowing when to lay back and knowing when to attack. Here is a great example, the iShares Micro-Cap ETF (IWC), my poster child for the new bull market. I added the 21-day (red) and 200-day (green) moving averages. The green arrows tell me when the price of the fund is more than two standard deviations above both. Clearly, this is not sell signal but I like to use it as a wakeup call to decide how aggressive to be. There are similar dynamics at play across the other small cap funds that I track.
A Few Random Thoughts
A Few Random Thoughts
A Few Random Thoughts
Random thoughts as I go through the week: As I was going over charts on Tuesday night, I wrote in my notebook that some of the leading themes were a bit stretched to the upside. Noting impactful for the long-term trend in the market or my view that we are in a cyclical bull market, just something to note. I like to think of it as a way to gauge how aggressive to be. Knowing when to lay back and knowing when to attack. Here is a great example, the iShares Micro-Cap ETF (IWC), my poster child for the new bull market. I added the 21-day (red) and 200-day (green) moving averages. The green arrows tell me when the price of the fund is more than two standard deviations above both. Clearly, this is not sell signal but I like to use it as a wakeup call to decide how aggressive to be. There are similar dynamics at play across the other small cap funds that I track.