Why is the Russell 2000 getting boot kicked this week?

Well an index is a composition of stocks. Sounds like a dumb answer but let's dig in..
2/ The composition of stocks inside are now eating the index. The #momostock trade has fueled it for months now. However, if you look at our Live Charts flow measurements (volume and money), you can see that price has been rising since December as volume and flow ...
3/ have been collapsing. This is because of the components in the index overwhelming the entire order flow. $IWM has benefited from names like $FCEL and $PENN and $PLUG and $GME.
4/ Now it’s being eaten by them. Is this a correction? Or are these signs of the end of an epic bull run in $IWM? It all depends on the components of the index. Where will the leadership come from going forward?
5/ We’ve talked about passive indexation being something that’s self-reinforcing for a long time…meaning that as a stock gains market cap, the #ETFs will indiscriminately buy more of it. This led to an upwards feedback loop in these mo-mo names on the index. Now with these...
6/ ...names being the heaviest weighted in the index falling apart, the index itself is falling apart. You can thank passive indexation for this, which was fueled by call buying on the way up…
7/ ...and is being dragged down by indexing rules on the way down. What happens next for the #Russell2000? If these names don’t turn around soon, then they’ll continue to drag on the index…
8/...and if the index leaders that are left roll over, then you’ll see the Doom Loop unfold as good companies are indiscriminately sold as quickly as the overvalued growth stocks have been.
9/ Stay tuned…it’s too soon to determine if the bulls have lost the ball here…but they’re starting to turn it over no doubt…and volatility is starting to pick up. Keep an eye on the value stocks in the index for more clues and watch volatility...

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More from @vigtecofficial

19 Nov 20
Today was a massive mover in GEX readings across the board. Let's explore some in a thread:

1/ $SPY $QQQ $IWM $DIA

All indexes erased some of the most bullish dealer positioning of the year (as of yesterday) completely off the board and all are now negative or neutral! 🤯
2/ $GDX $SLV $GLD

$GDX is in real trouble - GEX is very negative and selling into weakness will persist

$SLV is holding onto the positive reading by a thread here

$GLD is also holding onto the positive reading by a thread here
3/ $TLT

20 year bonds are on the rally - pretty close to busting up and over to a positive GEX and definitely neutral now
@hereforthefin
Read 6 tweets
18 Sep 20
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2/ Real time trade tickets and order entries that simulate real brokerage systems - INCLUDING MARGIN!
3/ Real time portfolio allocation analysis and performance tracking. Press play algos that are prebuilt to help you better track your positions. Automated algo alerts that help you stay informed.
Read 5 tweets
15 Sep 20
This Friday is Options Expiration (referred to as OPEX). This is also the quarterly OPEX which is called 'QUAD WITCH'. It can and usually does have an impact on the markets. Here is the current picture for the @StateStreetETFs $SPY ETF for this Friday via our market indicators.
1/ Max Pain for the $SPY for this Friday and a definition of what Max Pain is...
2/ Here is the Open Interest as of this Friday options for $SPY and a definition for Open Interest
Read 6 tweets

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