Stocks & Commodities V. 29:3 (24-28): Empowering Traders With The Russell 2000 by Gail Mercer

Stocks & Commodities V. 29:3 (24-28): Empowering Traders With The Russell 2000 by Gail Mercer
Item# 040MERCPDF
$2.95
Availability: In Stock

Product Description

Empowering Traders With The Russell 2000 by Gail Mercer

Ever thought of trading the Russell 2000? Here’s how retail traders could benefit from trading this index.

New traders are drawn to the emini Standard & Poor’s 500 like bees to honey. Go into any live trading room and chances are that the moderators are teaching traders to trade the emini S&P 500 because it has more liquidity than any other market. In Figure 1 the average annual volume is compared between the following emini indexes: emini S&P 500, Dow Jones Industrial Average (Djia), Nasdaq 100, S&P MidCap 400, and the Russell 2000. It would be a logical assumption that the emini S&P 500 moves more than any other market. After all, volume fuels the markets, and the emini S&P 500 has more volume than any of the other indexes. However, let us look closer to see if the emini S&P 500 leads in tick movement or dollar movement.

Figure 2 compares the average annual tick movement between the following emini indexes: S&P 500, Djia, Nasdaq 100, S&P MidCap 400, and the Russell 2000. As you can see, the emini S&P 500 is no longer the leader. In fact, during the eight-year analysis, although the emini S&P 500 had the highest volume, it was the lowest in tick movement when compared to the other markets.

If volume fuels the markets and the emini S&P 500 has the most volume, why is it consistently lower in tick movement than any of the other markets? Since each market has different tick values, perhaps we need to compare the average dollar movement to find the answers.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order