Russell 2000 Double Bottom (RUT, IWM, SWKS, UAUA, TUP)
August 25, 2010 11:47 AM
The Russell 2000 Index (RUT) is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index. A small-cap stock is generally defined as having a market capitalization of between $300 million and $2 billion.
A way to play small-cap stocks is with the iShares Russell 2000 Index ETF (NYSE: IWM). This corresponds directly to the Russell 2000.
Today, IWM is flat at $59.63. The ETF made a low of $58.66 in early July and both yesterday and today traded just above that level before turning positive. Given the terrible economic data lately and the fact that the IWM is flat/positive on a day like today, one may conclude a double bottom is in place for the IWM.
Small-caps may be signaling a near-term bounce in the markets. Individual small-cap names you can play are Skyworks Solutions (NASDAQ: SWKS), UAL Corporation (NASDAQ: UAUA) and Tupperware Brands (NYSE: TUP).
See Some of the Top Moving Indexes Here.
