**trading Alert: Russell 2000 Breaking Out***

Discussion in 'Index Futures' started by michaelscott, May 9, 2007.

  1. paden

    paden

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    #11     May 12, 2007
  2. Great, GREAT analysis. Let's move to Fundamentals, shall we ?
    Dow at all time highs. These are stocks in a "monopoly" position with low debt and high cash balances. This is MUCH DIFFERENT than Russell 2000 stocks which are mostly highly leveraged and very susceptible to higher interest rates.....Bernanke and Company HAVE BEEN SHREWD up till now......they are not showing their "HAND". But, the key is: INTEREST RATES MUST GO HIGHER (This is their hand they are NOT showing !). One might ask, why ?
    Answer: HELLO ! The US Dollar must get stronger or else we'll be in the land of Argentinian Inflation ! 20%+ !
    My gosh, the cost of everything from gasoline to paint to food is increasing at double-digit annual rates (ignore the tainted govt reports for now) And, this is key: wages are not increasing.....at all. Bottomline: super-squeeze for the consumer. Check out the latest report from Circuit City: no one is buying that hi-tech "stuff".....they've run out of money.....errr....discretionary income as the PhD's would say.

    Buh-Bye RUT...see you in the 700's.
     
    #12     May 12, 2007