Why did the RUT tank so hard?

Discussion in 'Index Futures' started by blackchip, Jul 29, 2007.

  1. Any theories (or facts) on why the RUT got hit so bad compared to the Dow, Naz, S&P, etc.?
     

  2. RUT is more volatile than SPX.
     
  3. In a bull market, you expect smaller-cap stocks to rally farther. In a bear market, you expect them to decline farther. The "generals" are less volatile than the "cats & dogs".
     
  4. gov

    gov

    Trade it a bit and you'll see it often tends to overshoot the others. It's just its character. You'll begin to like that after awhile...

    Me, I am waiting on today's gap up open; remember Mr. Market, I said gap Up open... :D
     
  5. Ok, I thought maybe it had to do with the debt market making it harder for small companies to borrow.
     
  6. jj90

    jj90

    You could have noticed something in the recent weeks leading up to last on the RUT. When the 3 other majors were pushing up hard, RUT stalled consistently at 855.
     
  7. Babak

    Babak

    Since it is small caps, they are a more representative index for US stocks. The SPX has a lot of international exposure. So if you want to short the US stock market, you'd go more with RUT than SPX.