big and small

small caps $iShares Russell 2000 ETF(IWM)$ lags behind large caps $SPDR DJIA ETF(DIA)$ . dia had already made a new all time high but small caps have yet to do so. small caps lag behind because of the high fed interest rate. the large caps are more able to coup with the high fed interest rate by economies of scale. 

iwm's pnf showed it is at resistance zone. breaking above this resistance zone would mean that sector rotation is in play. this would mean$SPDR S&P 500 ETF Trust(SPY)$  would continue to make new highs until the small caps run out of steam. 

dia has potential to reach 420, 1.618 of Fibonacci retracement applied to pnf. bull trends normally lasts 4 to 10 years.

do apply automatic investment system where you add shares at each 10% drop or at support zones if you know technical analysis. this way you conserve your capital while the stock is strongly downtrending. do take profit at 10% intervals or at resistance zones if you know technical analysis. this way you have capital to buy the dip. only applies to stocks in an index or warren buffett would approve. bon courage.

merci@TigerStars  @TigerWire  @Asphen  @koolgal