Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: XBrit who wrote (136221)	7/24/2008 2:50:51 PM
From: microhoogle!	Respond to of 306849

Is it a leading indicator which might pull up SPX up down the road for a year end rally?

To: XBrit who wrote (136221)	7/24/2008 2:57:08 PM
From: Elroy Jetson	Respond to of 306849

In a decline you can't sell RUT firms in size. The liquidity is in the big name firms, so they get sold. During a bear rally no one sells either, so small caps out-perform. Another reason could be the recent recovery in the US Dollar. Large firms had done better collecting earnings in other currencies, but RUT firms are mostly Dollar based. .

To: XBrit who wrote (136221)	7/24/2008 2:57:17 PM
From: DebtBomb	Respond to of 306849

Agree, it's weird. But, I think that about the trannies too. ?

To: XBrit who wrote (136221)	7/24/2008 4:20:55 PM
From: Perspective	Respond to of 306849

It's actually been going on for quite a long time. By a stroke of luck, my hedge of choice has been UWM, along with some QQQQ. I don't know what I'm going to hedge with next, though. It seems like the $RUT outperformance should come to a close soon. And I think tech is probably ready to play catch-up on the downside. With energy and financials coming down, SPY looks pretty weak. And many of the DJIA now look to be joining the bear. The only thing I can figure that should hold up relatively well are the small caps that got beat down to book value already - perhaps that's why $RUT has been so strong. Maybe I'll just end up hedging with SPY and UYG; that mirrors much of my portfolio anyway. I'm not trying to gain advantage by hedging with strength and shorting weakness; mainly I just want to neutralize exposure. Anyone have ideas? Are there any decent hedges that should maintain relative strength in the next downleg? Utilities come to mind, but I don't think they track the market much at all. Don't do much to lower Beta. Perhaps consumer staples and healthcare? The ideal hedge is correlated strongly to the market, but has relative strength. `BC