I have mention here that the fact that the smallcaps were holding up well was a sign that these businesses were not having trouble receiving loans. Small companies do not have large cash reserves and need to finance growth. I believe that the chart of the Russell 2000 (RUT) is the place to watch to determine how the activities to rebalance the the statements on financial companies is proceeding.
My opinion is that as long as price stays above the 1:2 Gann angle then the recapitalization plan is working. The 1:2 angle has been support since March. Last week there was a big push higher. Any significant move below the 1:2 angle will signal to me that the trouble in the financials is so large it cannot be resolved in the near future.
Tags: Financials · Gann Angle Fan · Russell 2000 SmallcapsNo Comments
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