It was up so much more than everything else. It came back in line a bit at the end but still really strong. Thanks
the beta for the er2 is very very high. Plus I think a lot of people were short it, its full of small american companies that would get slaughtered if the US economy stumbled, so there was a lot of panic covering. Bot some puts because I think we're going back down there. roy
Look at the 5 day chart of ER2 vs YM. The indices were way off and ER2 simply rallied harder this morning to catch up. If you tried trading the divergences between ER2 and YM this am, then you probably got screwed.
Its not untypical for the R2K to move twice as much %wise than the dow or the s&p 500 on any given trend day. Only recently when the subprime mess effected the big financials in the S&P has it shown less volatility.
Thanks for all of the great response. I did get screwed. Even during that mid day sell off. the sp500 was around up 2 the mid cap was almost unchanged. And the ER2 was up 11. Very weird day. Silly question, but any idea how to figure out it is going to be a weird day before hand?
Study the price action behaviour after FOMC announcements for the past 10 years along with segregating the announcements when they occurred during the year. The clues are there. Mark
My guess: the RUT hasnt exposure to the broker-dealer category, exactly the stocks most people are avoiding like lepers. The NDX wasn't too bad either early this morning, it was just 4 pts from breaking new highs from its monday lows.
The crazy russells just erased yesterdays losses. 10 points away from making new highs from last mondays low.