In part 1 of our commentary, we discussed the current Fundamental Gravity of our “Reflation&rs...
Midcap ETF Stochastic Signaling a Buy
12/15/2009 12:01 am EST
iShares Russell Midcap Growth Index Fund (IWP) - From the March bottom to September, mid-cap stocks outperformed the overall market.
But profit taking and several disappointing earnings slowed progress, and since early November, the higher-quality stocks have led.
On December 3, I wrote, "Now, however, it appears that mid caps may be coming into their own again.
A break through the triple-top at $44.50 could signal a dramatic burst to the upside.
Note the recent buildup in volume on IWP, along with a new stochastic buy signal.
If the break occurs, the target would be close to $50. But stop-loss orders should be placed at just under $40 to limit losses in the event of a reversal."
This opinion has been reinforced by recent market action.
By Sam Collins of OptionsZone.com
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