Price has recently twice bounced off support at around $211 forming a double bottom. This signifies a reversal of the prior downtrend; the new uptrend, thus far, seems to be quite strong. Take most profits at $216.50 where, according to Fibonacci levels, we could see some resistance. If price breaks out above that it may be worth holding a few runners with a...
IWM has been rangebound for almost one year now. Price was around highs of 170 before the "Covid drop." The 212 area is strong support, but it may break soon. Since price broke out of the upper resistance and fell right back into range, a break of support may soon follow.
Let me explain how I use stochastic %K warning signals, which usually lead price...
It appears that we have a lot of uncertainty ahead and now is a good time to plan ahead to be sure you aren't left holding the bag.
Short Term: Up
Longer Term: Down
If you combine all the buying and selling across all the major indices you start to see the following:
1.) Sell off volume to the downside is higher than buying volume.
2.) Noya indicator showing...
It seems by all indications that we are heading into a bear market. With raising interest rates, tapering, and shrinking of balance sheets, we will see the Russel take at least a 20% tumble from the current price. The 100MA puts the Russel 2000 at around 1400, and further down on 200MA. A couple of key points:
Only 40% of Russel 2000 are above 50-Day MA.
Short-term forecast for Russel2000, relevant mainly for small caps companies. The index, starting in September 2020, bounced off the support level of 2100 several times, and on December 20 of this year found itself in the superpoint zone, from where it went up strongly yesterday. Growth is expected to target up to 2500, up to the support level of the sloping...
... for a 2.09 credit.
Comments: Emulating dollar cost averaging into small caps via a 17 delta short put in the contract nearest 45 days until expiry. Currently, the highest 30-day implied volatility broad market exchange-traded fund on the board with 30-day at 27.0% (although QQQ comes in a close second at 26.5%).
IWM (russell 2k ETF) has been stuck in a ranging rectangle consolidation pattern for like a year. Everyone can see it, it's definitely no secret. This is why I think the last bull spike above resistance failed and was sold off; it trapped a lot of people who assumed it was an upward breakout.
Anyhow, this simple mockup just adds more bad juju, as you can see...
The IWM as seen from the chart has been forming a solid and strong Inverse Head & Shoulders.
An Inverse Head & Shoulders is a strong Bullish Chart Technicals Pattern, that can be seen here. 2 Shoulders, and 1 head in the middle, making the low.
I am sharing this idea, as it is a pattern which has been printed on the Russel-2000 this past week, and can't go...
The Russell 2000 $IWM has my attention.
Small caps, small towns, mostly domestic, with the main concentration being Healthcare, Industrials, and Financials.
Its top 10 holdings are:
I am not thrilled that AMC is the largest holder. I get it and see why movie theatre are mostly domestic and fit the small cap...
I've been a big fan of Cem Karsan for some time.
Cem is a volatility expert, one of the best.
Check him out on twitter at twitter.com
This new series, Following the Croissant Crumbs, will focus entirely on Cems appearances on podcasts.
I'll put all my notes of his appearance along with charting some key crumbs he leaves behind for...
SPY has been quite strong the last couple of days but the same cannot be said about IWM. However, today IWM was able to follow SPY. Bounced off the 211-212.5 support and ran higher. It could next test the resistance at 220.
The question is, can it fill the gap at 226-230? The answer is not so fast as there are two more resistance above 220 and near/below that...
Daily Chart Report
IWM finally breaking to the downside. The first price target is at 198 support level. It think it could move even lower. According to the TA a full measured move to the downside is at 168 support level.
$IWM here doesn't look that bad for a channel bounce.
It has been stuck in this range for a long time now and once again seems to be on the bottom of that sideways channel.
I like it as a long down here and your stops are close if we break and close under the channel.
Simple trade idea here. 1 month out, >10% RoM (Return on Margin) This one was filled at 0.55 credit, allowing for commissions on the way out to be covered and keep the 10% return.
I did not love that this was moving downwards still, but we are near the bottom of the range and this trade gives us 8% or so of room. Management rules will still apply. close at 50%...