As discussed on my Facebook page on the 14th of December, the markets are now coming into a correction from a very strong Rallye of all US- indices, therefore we are in an overbought market condition. The seasonal tendency gives us nevertheless an Outlook for further higher market levels. Such corrections can be used for a Reentry into the market!
See below how you can find overbought markets with the Fear and Greed Index, this could also be checked with an RSI indicator but then it requires a chart software:
Comparing all American indices, I noted that the Russel 2000 index and its equivalent the IWM- ETFs are running a bit in front of the market and the correction in the IWM seems to be running/finished already.
Therefore an Investment makes sense with an intermediate goal of 141/142 USD.
See below the chart of the IWM ETF:
This investment can be done with the following ETFs:
- IWM – simple Russel2000 following non-leveraged ETF
- TNA- basically 3x leveraged IWM
cheers and good luck