Anyone notice IWM underperforming on the upside as well as the
downside these days, compared to the DOW ?
I think this is directly related to IWM option spreads going
to pennies, price you pay for tight spreads.
IWM becoming compressed
Started by
CLK
, Apr 11 2007 03:04 PM
1 reply to this topic
#1
Posted 11 April 2007 - 03:04 PM
#2
Posted 11 April 2007 - 03:22 PM
My take is if the bears can't take it down farther by the close on Friday we are going to see a retest of the highs in all the indexes.
I'm now overall flat with longs in energy/materials, some semis (VRGY, MKSI and a couple others) and shorts in financials, and some consumer sensitive issues like restaurants and retailers.
FWIW PNRA and CBRL look vulnerable. I've also been heavily short CCL for a couple weeks. I'm short some financials, too.
I don't like the OEX P/C and the tape hasn't been spectacular. However, no reason to be overly bearish.