Is The Russell 2000 Signaling Correction, Will Gold Miners Skyrocket?

New York (Mar 12)  Summary •Is the Russell 2000 trying to tell Us Something? •Last 2 Weeks: GLD - 5%, SLV - 10% GDX - 20% Are Gold Miners building a technical base? •How might the inevitable "FED Decision" impact ETFs of major averages, SPY, QQQ, IWM? •Possible Opportunities on how to Effectively Capitalize on Future Developments.

Is The Russell 2,000 Trying to Tell us Something?

iShares Russell 2000 (NYSEARCA:IWM) is down approximately 5% from its recent highs, however, other averages are down noticeably less, the (NYSEARCA:DIA) is down 1.5%, (NYSEARCA:SPY) 2%, and (NASDAQ:QQQ) is less than 1% away from all-time highs. A phenomenon often observed at or near market tops is that the small caps begin leading the decline.

Why the Sharp Correction in Gold Names?

Gold (NYSEARCA:GLD) is down 5%, Silver (NYSEARCA:SLV) is down 10%, and Gold Miners (NYSEARCA:GDX) are down 20%, in the last 2 weeks. In many instance throughout recent history the gold mining group begins forming a bottom before Gold & Silver prices do during corrections. Furthermore, this group is likely to rally no matter what the FED decides to do next week. A FED induced market selloff would likely drive investors into gold, as would a decision not to increase rates. Most importantly, there is inflation, and this is great for gold and gold related products.

Source: SeekingAlpha