
NYSEARCA:IWM
Financials, energy and utilities will see a catch-up trade in the second half of 2023. Certain cyclicals will perform. IWM saw good support at $180 and could top at $195-199. But the Russell 2000 is extremely sensitive to interest rates, and a third of the index is not profitable (those companies). The GDP is also expanding, though, but she thinks GDP will slow while rates stay at 5-5.5%. Overall, not a great environment for small caps and cyclicals. But there will be a catch-up trade in cyclicals in Q3, then it peters out.
It gained today. It's an important indicator, reflecting the Russell smallcaps. Last September, the Russell and IWM exploded up, but since January this has been rangebound at $210-235. AMC, healthcare, financials, industrials and tech dominate the IWM. If this breaks $235, then the S&P is off to the races.
20% off all time share price high.
Market rally will lift shares to new records.
Small cap indexes presenting opportunity.
Better diversity in companies that make up index.