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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (169899)3/25/2021 7:08:40 AM
From: sense  Read Replies (2) | Respond to of 220324
 
In March 2020 I rode SQQQ and watched the others carefully... but the differences weren't too great.

I did however switch from SQQQ to thinking SRTY was the better positioned for the next round... which has proved very useful here recently as SRTY has been killing it... the R2K down 2% or more on days other stuff is up. ? Why ?

The driver is the stupidity of 60/40 portfolio re-balancing... which as interest rate changes alter bond prices... forces selling the R2K stocks to maintain the 60/40...

The R2K is the stubby little market tail that gets wagged furiously when managers are forced to re-balance but still loathe to surrender positions in window dressing stocks...

A no brainer of a trade... driven by a brainless investment "strategy"... all dumb as a box of rocks...

Market rule #1... no one ever said it had to make sense... so it doesn't.