Now you would have expected this to happen in reverse: RUT hits outside +2, sells off, then big caps follow. Nope they did it donkey-backwards, but whatever, both reversed like a charm. RUT has been untradable in 2018 up to now. Basic correlation is on risk on days RUT up more, on risk off days, RUT down more. It's all went to Hades in 2018 with RUT strength. You don't have to tell me twice. When I short, I short the DOW or SPX. Now, however, the last few days have producted a hard sell in RUT and maybe things will get back to normal correlations.
I don't suggesting trying to time these monthly sigma charts unless you are a longer term position trader and like to "bleed in" to a short, but its still a heckuva chart. That Dow nonsense from back in Jan 18. I think I had counted like 21 of 30 Dow stocks that had MAX-Q'd outside the +2 back in Jan. I bet that ends well, LOL. Degenerates.
Edited by viccarter, 27 June 2018 - 02:53 PM.
