IWM is within a 2 year channel with distinct points.
Lower end (red arrows) around $144-$145
Upper end (black arrows) around $160
Highlighted areas are times in which we breached those areas.
Yesterday the IWM traded down as low as $144.25, buyers stepped in to drive the ETF up.
Buyers have stepped into and bought around that area for the past 2 years. ...
The computers better start pumping, otherwise small caps, transport, and retail are gonna fall off a cliff.
Note that some stocks are already at 52+ week low, market only appears to be interested in pumping tech stocks. If they don't pump futures the next coupla days, small caps are in serious trouble since it's sitting right at support.
No position, shorting...
Things are getting ugly economically and globally. Nearly everything soured very recently, and notably so. Sentiment is the only remaining silver lining.
Fascinating things are happening left and right.
Goodluck next week gentlemen,
Last Week's Post:
Much like retail (XRT), small caps (IWM/$RUT) are at critical support. If the support breaks then we're looking at Dec lows for next support.
Weird thing about small caps, there are some dividend stocks I think are undervalued and some that are waaay overvalued like FC and WK.
With the $ES and $NQ rebounding off the 200-dma and at the 61.8% retracement level, the big question is this another BTFD moment or part of a bigger move down?
The $RTY might provide a clue here with a breakdown from a wedge and a retest of the wedge lower boundary which is also marked by a SSR resistance. Odds are for a CD leg down for the Russell 2K and...
M (87/58) announces earnings this week and has the most appropriate rank/implied volatility metrics for a contraction play.
Pictured here is a narrow short strangle in the September monthly that is almost a short straddle, set up this way primarily because M is trading at 19.43, which Is smack dab in the middle of the short strikes. It's paying 2.25...
Wild week. Volatility is picking up, $57.25 expected move seems low given that we moved $100 on Monday alone.
No clue what's going to happen next week. Leaning bearish. Bond market seems extended. Stock market has no incentive to invest.
Your money carries you further in heavier risk environments.
Last Week's Post ($58.5 Expected...
Gravity Point at $2911 looks like an objective Long. Short term, this is oversold, 5 days down in a row.
Plan on exiting the long at the Red Box. I could see another shorting opportunity if we got to $3000 again.
Expected move increased by $20 after last week had a 3 standard deviation move down, breaking the trend we had built.
Last major week of earnings...
IWM ($RUT) forming a pennant, just a reminder that small caps plunged first last fall.
The weakness in small caps makes it hard for me to get bullish on the market though futures look to be setting up for another pump and dump tonight.