Jump to content


Staggering divergence between RUT and SPX/DOW

  • Please log in to reply
No replies to this topic

#1 viccarter



  • Traders-Talk User
  • 1,799 posts

Posted 07 March 2018 - 01:47 PM

We usually see RUT being correlated with SPX at about 92% which translates to RUT being up more on big up days and down a bigger % on big down days.  I used this to get long the close on 3/1 and sold 3/2, but didn't have any reason to take a short.  Now we are all out of sync (it's not like trading isn't confusing enough, but we now add this to it). 


I noted HARD distribution in afternoon session in RUT, but that in and of itself was not enough to short as the hourly was still turned up.  Well, I was bummed I missed the short after the news came out, but alas RUT is green with the DOW down 250.  Crazy times.


For 6 months I have felt that DOW was gonna be punished SO HARD because of all the old, high market cap GARBAGE that had ran up.  I had counted like 20 or 21 out of 30 stocks that had gone MAX-Q off the monthly sigma like +3 off a cocaine nose wide open bollinger band.  I told people who wouldn't listen that basically a best case scenario was 3-5 years of flat market to digest this GARBAGE.  Just go do a 1999 tech boom speculation, but go do it with BA, give me a break!  And I knew several, putting 100K of new money in market back in mid Jan.  And then you would see them come on Nightly Business Report on PBS and say to buy HD to the general public!  Shameful or stupid.  I'm going with shameful.


But it's not a pain that I would necessarily spare them, they will get everything that is coming to them over the next months to years.

Edited by viccarter, 07 March 2018 - 01:49 PM.