December Fed and IWM

2023 meeting saw an epic spike

IWM is going ex-dividend tomorrow morning, so at about 9pm tonight it will start trading about .80 less:

Now, as you are probably aware, with the cacophony of concentration and breadth blather, that IWM was down from its open almost every day since late November until today:

But, do you know which index performed best on Fed day last year? Twas the small caps:

That was quite an afternoon for Santa Powell, 8% by noon on Thursday:

Well, that round strike at $200 and associated gamma probably had something to do with this, but looking at ETF performances on Fed day last December, the small cap 3x ETF TNA, and the 3x XBI ETF LABU, which is loaded with small caps, did phenomenally well. Gold, pot and regional banks spiked as well; enjoy digging through this chart, there’s probably something for everyone in here: