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$老虎证券(TIGR)$ $虎牙(HUYA)$ $SoFi Technologies Inc.(SOFI)$ $Etsy, Inc.(ETSY)$ $爱奇艺(IQ)$ 

Russell 2000 ETF

Since I cant pull out the Russell 2000 index, I have decided to pull out the Russell 2000 ETF that I could find. Well it seems like US small cap stocks are experiencing a pullback after testing its recent 2 months high. This level is still not at the level as high as what we have seen in January 2021, Based on what I have checked, it seems like weighted average market capitalisation of Russell 2000 stocks is around 3.8 billion USD as of January 2021. This fits nicely into where Tiger Brokers and Huya are at right now.

With a pullback of around 4% from its recent peak, will Russell 2000 ETF find its support at the current trading level? While there is a chance for this to happen, there is equally a chance for it to pull back another 4%, which means a close to 9 to 10% correction for Russell 2000 if this happens? 

I have also pulled out a longer duration chart for my readers to see. It is presented as follows:-

Just as what I have said over these few days, I am not in a rush to go into a fast acquisition share mode. The good news so far is Tiger Brokers after falling below 21 USD earlier, has retraced back to above 21 USD. With my decent positioning into Tiger Brokers, I am happy for whichever direction that the price movement will be since my investment thesis remains intact.

As for Huya, I have been acquiring from 17.5 USD to 15.5 USD in small volume and has since acquired a decent bloc of shares. The risk overhang remains and we have to be watchful on how regulations may impact Huya. Nevertheless, I am still of the view that Huya is stronger company as compared to Douyu and should Tencent really be pushed to choose between the two, it will decide to move on with Huya. 

Long story short. There is an equal chance for Russell 2000 to move either direction and I will be more cautious these 2 weeks. With my positions in place, I do not really have to rush to allocate more cash into equities. The concern on Delta variant may have a bigger impact on small and mid cap companies but nevertheless, Tiger Brokers and Huya are well-positioned to do well with or without the Delta variant. 

SoFi's share price has also came down this morning in US trading time and hit around 16.8 USD earlier. We shall see how it moves. Again, for me, I am not considering to allocate any capital into SoFi unless I see it trading closer to 12 USD. Again, even at that price point, I may or may not commit to acquiring any shares in SoFi then.

Etsy's share price came down further to 193.4 USD this morning in US trading hours. Again, I am waiting for it to trend towards 160 to 180 USD before deciding what to do.

As always, my comments on SoFi and Etsy should not be inferred as the prices are definitely coming down, It has a chance to rebound with the broad market if market conditions change too. My take of these stocks also took into account of my current portfolio allocation and risk reward preference.

As always, the above should not be construed as any investment or trading advice.