2 replies to this topic

[sglasson]

eom

[arbman]

I do not know the exact sub-prime exposure, but there is a heavy bank weighting in the index, it is also not benefiting from the recent slide in the material sector. The two totals to something like 36%of the index. The rest is pretty much service sector and they won't rally well until the inflation pressures start to increase again. RUT usually rallies at the end of the rallies with the excess liquidity, I think the next rally will be built upon the large caps and especially with the technology... But, if you are interested in the volatility and really good at picking the tops and bottoms, this index can give you what you are looking for. I honestly stay away from long RUT at this juncture... I think NDX long, RUT short is an easier trade, if you want to be exposed long. Once the financials bottom OEX will be also a good play, imho... Sector % of Index Financial Services 21.4% Industrial Materials 14.9% Healthcare 12.4% Business Services 10.6% Hardware 9.9% Consumer Services 9.0% Consumer Goods 5.3% Software 4.9% Energy 4.8% Utilities 3.0%

Edited by kisacik, 06 August 2007 - 10:26 AM.

[ogm]

I do not know the exact sub-prime exposure, but there is a heavy bank weighting in the index, it is also not benefiting from the recent slide in the material sector. The two totals to something like 36%of the index.

The rest is pretty much service sector and they won't rally well until the inflation pressures start to increase again. RUT usually rallies at the end of the rallies with the excess liquidity, I think the next rally will be built upon the large caps and especially with the technology...

But, if you are interested in the volatility and really good at picking the tops and bottoms, this index can give you what you are looking for. I honestly stay away from long RUT at this juncture...

I think NDX long, RUT short is an easier trade, if you want to be exposed long. Once the financials bottom OEX will be also a good play, imho...

Sector % of Index
Financial Services 21.4%
Industrial Materials 14.9%
Healthcare 12.4%
Business Services 10.6%
Hardware 9.9%
Consumer Services 9.0%
Consumer Goods 5.3%
Software 4.9%
Energy 4.8%
Utilities 3.0%

Agree on large cap techs. Bought INTC this morning too. And added WDC.