With drop today I took short position. The action from Feb. looks like a form of H&S with the H a M shape to me. Using that idea I have a short term target that wold take out the nearest gap. I personally am using a 2 hour close above 134.56 as my stop (the low of .1 on a non-bat realtime chart). There is always more risk to take the bear side in a long term...
Taking advantage of a little IV in the Russell with a Put BWB.
Trade Setup:
-1 IWM Mar 17 134/136/136/137 Put Butterfly @ 0.18
DTE: 31
Max Win: $118
Max Loss: $82
Breakeven: $134.82
Trade Management: I will look to take 50% off this trade if we come down to $136.00 in the upcoming cycle, so around $59. If the market decides to crash, I am comfortable...
Sometimes after a very strong upswing (EWT speak "impulse wave" often wave 3 of a move:see daily) the final move up doesn't amount to much (exhaustive "5th" wave). Although uncommon it is composed of 3 overlapping waves (sort of like the diagram on the 120 min.)
We are still in a uptrend but it appears to be weakening. We have a bearish divergence in the daily...
3 weeks ago I suggested a target of 143.5-147.(see link below) The most recent price action looks to me like a expanding triangle. I called it a way ".4". If my analysis of the form is correct it should not overlap wave ".1" high of 136.97. The low today was 136.99. If wrong I will use the stop of 136.95. If right we should soon see more thrust up followed by...
I had published an idea while ago and now after I revisited the IHS target I realized I have to correct it.
I thin $2400 is a great psychological level as well!
There are a few names popping up on my radar for earnings plays, but when I "look behind the curtain," they aren't that attractive ... .
TEVA, for example, announces on Monday, but it's an ADR, so it could be before market open or after market close or, indeed, not at all, but on some other day. It's tough to put on a volatility contraction play when you don't...
