If you are still long IWM which is Russel 2000 ETF or worse than that if you are long TNA which is 3X long IWM, you should be numb by the great ride that you had in the last couple of years and you might not want to see what are in those ETF funds but I give you 3 top 10 holdings and show them their charts and P/E and their earnings and then you should decide if you still want to hold them or take some profit. 1- ISIS Pharmaceuticals P/E =NA EPS =-0.21 yes negative earnings !!- Check out its chart 2- Puma Biotechnology P/E= NA , EPS =-5.72 yes still negative earnings !! Check out its chart 3-Bluebird Bio P/E=NA, EPS=-2.19 yes again negative earnings !! Check out its chart. All of them have ridiculous charts.
Interestingly there are options on the TNA on the CBOE. However, they are thinly traded...not much volume....and the premiums are high
I did not mean that from tomorrow they will tumble. What I meant was they have the potential to drop 50% and still be overvalued but you cannot say that to other solid and overvalued stocks like Dow components.
they have the potential to go up 50% as well; this market is consolidating but it may ultimately break out higher
I cannot predict the direction of the market. I just wanted to show that IWM longs are long on stocks that have gone up from $25 to $200 with $5 loss per share. Actually my belief is that we will see biomedical stocks will lead the next correction phase.
No one should be long IWM for fundamental reasons. Technically, it may or may not be a good move, depending on your time frame. The problem with these kind of threads is that no such distinctions are made.
DOW, NASDAQ, S&P started flat and then down and now are up but IWM and IBB are both down. More IBB. I believe Market should drift much lower. I don't mean crash. Just 20% correction. No steam to take market higher from here.
Last Friday was the opposite. Small-caps and riskier stocks were up while large-caps were down. You can't make mid-term projections off daily fluctuations.
True and that is not my intention I said market is up and it will go down (my belief) and more riskier stocks will go down more. I am not talking just about today. I am talking about a trend.