Since 2005, the IWM/SPY ratio has held this key support level 6 times. This support failed only once, in the midst of the Covid-19 pandemic. Now we find out whether the pandemic was the exception that proves the rule, or whether the pandemic structurally changed something about the relationship between small caps and large caps.
Small cap valuations look better...
This is an idea that I have an probably will keep working on for a long time. I haven't shared any ideas in a while, and this idea will be a detailed and one of my best ones so far. The aim is to provide the guidelines on how to improve the decision making of your next trade or investments. I will try to keep it as simple and short as possible. As the chart above...
Daily Stoch going up but look at VOL more selling buying
and Like I said it can rally to 100 or 50 day ma stop. look 4 lower highs
look daily candle doji on a rally into resistance and with a rally look vol RED today
Why did it rally shorts covering no new money big guys see what I see that weekly stoch heading down. TIP see the weekly stoch bottom one see how...
... for a 2.02 credit.
Comments: Selling the 16 delta put in the expiry nearest 45 days until expiry to emulate dollar cost averaging into small caps. Generally, take profit on approaching worthless or take assignment of shares, sell call against.
Daily stoch going up so IWM going up but making lower highs lower lows and look VOL AND UNDER 50 AND 100 DAY MA.We have 3 lower highs on daily and that vol gonna fail. They can push it to 50 day 225 but that be it. IMHO
Weekly still heading down so with that weekly stoch heading down that downward pressure on stock so it will continue make lower highs, until u get...
In this chart we analyze the relationship between the Small Cap iShares ETF and an analog of the 2002-2003 price action. From our view, we can see that we are clearly holding a similar pattern from back in the early part of that decade. This happened to be after a recession as well where the value/growth rotations were just as if not stronger than they are today....
Multi-Time Frame EMA x2
Thoughts: This chart looks very bearish but I'm hesitant to sound the alarm due to how many topping patterns we seem top gap above. The bullish case for the IWM would be the LagRSI crosses above this bearish zone with a close above the rounded top and confirm the violated trendline as support....
Looking at the relative ratio chart of IWM/QQQ, we note the price trading at the lower boundary of the linear regression channel, having recently completed it's bear flag formation. As a pair one could consider a long IWM ETF/short QQQ ETF, at current levels or better.
Current ratio: 0.60
Preferred buying range: 0.57-0.60
Target Range: 0.65-0.67
Look daily going up the stoch
know look weekly heading down meaning any rally will fail and make lower highs as being shown in chart. See the daily both places it turned up and we made a lower high THAT WEEKLY RULES .
IWM has been lagging and is looking to break out of the long term range we have been in for all of 2021. if it does it will drag everything down. but RSI and CCI both have come back from oversold so risk reward favouring upside, look for MACD crossover to confirm. Getting in too early is always a probelm, wait for confirmation.