RUT

Updated: Nov 30, 2021

RUT’s chart reminds me of the old country and western song: “How Can I Miss You When You Won’t Go Away?”

The Russell 2000 is down over 10% today, so it’s technically in a correction. Some of its individual components have really taken it on the chin. And, it’s fallen below its 200-DMA, which is typically bearish. Seems like a solid shorting opportunity, right?

Not so fast. RUT has fallen at least 10% three previous times over the past 21 months, recovering each time to or near its former highs. The most recent peak represented new all-time highs.

How long can this go on? And, what does an Italian mathematician have to do with it?

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