Russell 2000 Intraday Review And The Trump Bump Commentary!

 

 

We are witnessing the unprecedented bullish mood towards the general stock markets and the Russell 2000 is no exception.  Many times, the Russell 2000 will not play nice with its friends, but which I like to see as  the Russell could already be sticking it to the bulls, while everybody is being brainwashed by the Wall Street talking heads. 

We are also in a very high diagonal wave pattern type market and I don’t expect that to change for some time.

I look at a dozen financial blogs in the mornings and on most days.  The first story about insider selling has surfaced, but I’m sure there were many more that I have not looked for at this time. The right news will be in the  dozen blogs I save in my tabs. I don’t waste my time in hunting news  The more stories that come out about insider selling, the higher the intensity.  This action precedes most major declines in stocks.  

In short, insiders don’t buy this Trump hype, while all the retail buyers are trapped.  Insiders are contrarians, yet we seldom hear about them in the news.  

In the long run this all helps to confirm that a potential bear market is still to come, but as usual we need to be more certain as the pattern can still spike like crazy. 

So far I look at this decline as a potential wave 1 bottom and the counter rally, is just about as choppy as we can get.  The VIX has also crashed to a new record low, making it the second lowest price point in the last two years.

It was only about 5 cents, but the new record low is now $10.93. Remember that the VIX Commercial traders are also extremely net long, so this all helps to start putting a major top to these markets again.  

Last week’s report showed that the Commercial traders added 6671 long contracts, which is about as bullish with the VIX as we can get.  On the flip side, this is all very bearish for the general stock markets. 

 

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