Russell 3000 Index Changes Will Shake up Penny Stocks

A major rebalancing of the Russell 3000 is in play this week which should make penny stocks some of the most exciting plays of the week.  Stocks such as VASC and DX will soon be added, while penny stocks with big followings and lots of investors like TSCM, FNSR, RICK, BCON, and VG will be getting the boot because of their plummeting share prices.  Buyers and short sellers should have plenty of opportunities to make money next week.

The Russell 3000 is the Russell index that measures the performance of 3,000 publicly held US companies based on total market capitalization, which represents approximately 98% of tenantable US market. Russell’s index began in 1984 when the firm launched its group of U.S. indices to measure U.S. market segments to help track the performance of investment managers. The resulting methodology produced the broad-market Russell 3000 Index and subcomponents such as the small-cap Russell 2000 Index.

Keep your ear to the ground and add stocks that will be moving in and out of the Russell 3000 index to your watchlist and be prepared to move fast.  A nice list preliminary list of stocks that may be moving in and out of the Russel 3000 can be found at Trade Naked.  They estimate that there will be a 121 increase in stocks in the index.

 

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