Buy the ProShares Short Russell 2000 ETF (RWM) to short small cap stocks I wrote last night in my Special Report: 8 steps to protect your portfolio from the global debt bomb on my subscription JubakAM.Com site.
Here’s what I wrote then: The small-cap stocks that make up the Russell 2000 belong to the small companies that will feel the pain of tighter and more expensive credit first. And this index looks likely to be the first bomb to blow up. The index, even with a 1.34% rally on the morning of October 24 to 1686.52 has broken through technical support at 1807 (the 50-day moving average) and a 1840 (the 200-da moving average). With the move up in the morning of October 24, the index is barely holding on above the June 2023 low at 1666. If the Russell 2000 can’t hold that level on the enthusiasm generated by BIG TECH earnings, and I don’t see why it should, then there’s nothing to support this index until 1475, a series of lows in September 2020 and then the big washout low in March at 1014. I’d also note that the Russell 2000 is a widely followed index–which isn’t a plus right now. You can bet the Russell chart is on the terminal of every Wall Street trader. Today’s move up might help some of them decide that this ihe time to short the Russell 2000. Others may decide to wait to hear more BIG TECH earnings. But third quarter earnings aren’ going to change the course of a global credit crisis. I already hold shares of the ProShares Short Russell 2000 ETF in my Volatility Portfolio. That position is up 7.99% was of noon on October 24 since I initiated it on March 15, 2022. Today I’m adding another position in my 12-18 month Jubak Picks Portfolio. (I will consider adding a third position to the Perfect 5 ETF Portfolio in the next few days after I look at how I want to allocate the assets in that portfolio overall.
So today I’m adding the ProShares Short Russell 2000 ETF (RWM) to my Jubak Picks Portfolio.