ProShares Short Russell2000 (RWM)
ProShares Short Russell2000 (NYSEARCA:RWM) Short Interest Up 42.7% in January
ProShares Short Russell2000 (NYSEARCA:RWM - Get Free Report) saw a significant growth in short interest in January. As of January 15th, there was short interest totaling 997,409 shares, a growth of 42.7% from the December 31st total of 698,978 shares. Based on an average trading volume of 21,872,153 shares, the short-interest ratio is presently 0.0
RWM: Shorting The R2000 Has Left Investors Short
ProShares Short Russell2000 ETF earns a Strong Sell rating, except for skilled market timers seeking short-term hedges. RWM is designed to deliver -1x daily performance of the Russell 2000 Index, making it suitable only for tactical, short-term bearish bets. Long-term holding of RWM is structurally disadvantaged, as the Russell 2000 posts positive annual results 74% of the time since 2005.
RWM: Not The Best Instrument For Bearish Bets
The ProShares Short Russell2000 ETF is a daily resetting ETF that takes a bearish position on the Russell 2000 market index. RWM's performance is determined by compounded daily rates, making it risky and potentially unpredictable. Consult those special risks carefully. Timing the disappointment and market attitudes is crucial for RWM to be effective.
RWM And The Next Market Decline
The Russell 2000 is currently underperforming but is expected to advance in the next few months, with RWM potentially being a better ETF to use in the next market downturn. While we expect another decline in a few months, Money managers and dealers' activity in the Russell 2000 futures market suggest it is too early. Low buying activity in RWM indicates the possibility of another wave down in the fund, with the price forecast to rise during the second wave of the bear market later this summer.
RWM: An ETF Poised To Exploit A Collapse In Small Cap Stocks
Small cap stocks are exhibiting a troublesome pattern, seen the last 2 times they broke down hard. The current market environment is characterized by flight-to-safety, and small caps increasingly offer higher risk as the economy deteriorates.
Metrics Of The ProShares Short Russell 2000 Point To Higher Stock Prices
Shares outstanding of RWM are at record levels. Historically, rapid increases in the number of shares outstanding of RWM occur at major market bottoms. Dollar assets in RWM are now higher than the March 2020 bear market bottom. This acts like a contrary opinion indicator.
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