Downtrend for Russell 2000 Still in Effect, Mark Newton Says

The video discusses the January effect, highlighting a strong start for risk assets like NASDAQ 100 futures, oil, and Bitcoin. It analyzes year-to-date performances of various assets, including the Russell 2000, Fang trade, and energy sector. Mark Newton from Newton Advisors provides insights on market trends, noting historical challenges with the January effect and current market resistance. He suggests selling futures due to overbought conditions and potential market pullbacks. The video concludes with a cautious outlook on the upcoming earnings season.

What is the January effect?

• A phenomenon where markets typically decline in January.

• A trend where risk assets see strong buying in January after December's tax-related selling.

• A strategy to sell all assets in January.

• A government policy affecting stock markets in January.

Which asset showed the highest increase in the year-to-date chart discussed?

• Energy sector

• S&P 500

• Russell 2000

• Fang trade including Apple

According to Mark Newton, how has the Russell 2000 typically performed in January over the last decade?

• It has been up more times than down.

• It has shown no significant trend.

• It has been down more times than up.

• It has consistently risen every January.

What does Mark Newton suggest about the current market conditions?

• The market is stable and should be held.

• The market is overbought and should be shorted.

• The market is undervalued and should be bought.

• The market is unpredictable and should be avoided.

What is the significance of the RSI in Mark Newton's analysis?

• It indicates a strong bullish trend.

• It has no relevance to the current market conditions.

• It suggests the market is overbought.

• It shows the market is undervalued.