New Trade Ideas: Getting Technical on Fundamentals

I have had some trouble looking for new trade ideas this week. My recent go-to's have become less opportunistic, except Green Mountain (GMCR), which I have traded the bleed-out since 4/3 (GMCR -14.34% since The "go short" call).

In an earlier WR I stated that "It will take another week or so to determine if this is a short term reshuffling or change in market direction," or something along those lines. Obviously my views have been that what's happening is a change in market direction. So let's do some pairs trading! I.E., a convergence of the Russel 2000 (RUT, IWM) index of small caps and the NASDAQ (NDX, QQQ, IBB) index to the trend of the S&P 500.

Since this is a bit technical, I'll leave it to these guys to outline the details:

• Russel 2000 Trading at 102x trailing EPS
• Momo's Crashing like it's 2000
• Russel 2000 Dangling Above 200MA

The trade though is pretty simple. Go short names like IBB, IWM, and QQQ.