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SML - Stock Market Directory

Russell 1000 Trading

By: MarketVolume.com Team

Article Category: SML Index Trading

The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92 percent of the total market capitalization of the Russell 3000 Index.

When interpreting the chart above, you need to remember that the most important factor is the relationship between Index Price and the Volume Moving Average (VMA). In this example we see that the index is trading sideways for the first part of the day, and then VMA begins to increase quite rapidly. In this case, the index and the VMA are both increasing, this is because the professional traders are selling AND covering their shorts. Generally when an index and the VMA both increase, that signals that the index will begin to decrease after the VMA has peaked. In this example you can see that not long after the VMA peaked the index began to decline. It is just after the VMA begins to fall that you should make your trading decision.

Below is an example of how one of our exclusive institutional investors used this signal for the index to maximize profits by trading some of the derivatives of the Russell 1000 index: