IWM and GDX Robots - September 19, 2011

[adam ali]

Billy,

I understand your thoughts about the SPY/QQQ. I, for one, would still ask, however, that you continue putting the SPY/QQQ charts up on the sight once a week - with the admonition that one should pay most attention to the IWM.

Thanks as always.

[Timothy Clontz]

The biggest different between IWM and the others is the way it's constructed. IWM selects about 650 stocks out of the Russel2000 index based on fundamentals. As such, it is not cap weighted and not a true "index" in the classical sense. Rather, it is a picture of fundamental-breadth activity and would be the most influenced by real traders in its underlying stocks. I note that rather frequently my own fundamental selections will appear in IWMs top 10 holdings, even though they are small caps.

In other words, it gives a balanced picture between index traders and real "buy and hold" investors -- for a better snapshot of the market as a whole.

[Billy]

Billy,

I understand your thoughts about the SPY/QQQ. I, for one, would still ask, however, that you continue putting the SPY/QQQ charts up on the sight once a week - with the admonition that one should pay most attention to the IWM.

Thanks as always.

Adam,

I will post them the next time I'll have them updated. If they are so important to you, I can't understand why you don't keep your own updated version. I simply have no use for them right now and won't lose my time with that chore.
Billy

[adam ali]

Billy,

No worries if it's a hassle. I can't replicate your charts and I find them quite clear and useful.

Thanks.