... for a 2.90 credit.
Max Profit: $290/contract
Max Loss: $710/contract
Break Evens: 1357.10/1642.90
Notes: A wider, longer-dated setup camped out at the 16 delta strikes for the expiry for the (ordinarily) sleepy summer months. I'm collecting a little less than my usual one-third the width of the strikes, but wanted more...
... for a 1.81/contract credit.
Max Profit: $181/contract
Max Loss: $319/contract
Break Evens: 1443.19/1626.81
Notes: Been a while since I've done any RUT. Collecting more than one-third the width of the wings with the shorties camped out around the 20 delta strike. Will roll the untested side on approaching worthless intratrade...
Russell 2000 futures is offering buy opportunities with weekly demand level around $1523 in control. There is nothing to stop price from rallying to Russell 2000 futures upper weekly supply zone around $1712.No shorts are allowed, only longs at new areas of demand. If you are trading other trading strategies or even options, you can use this Russell 2000 futures...
... for a 1.78/contract credit.
Max Profit: $178/contract
Max Loss: $328/contract
Break Evens: 1418.25/1601.75
Notes: Squeezing in a little more RUT in the July cycle and collecting greater than one-third the width of the wings. Will look to roll in untested side on approaching worthless or on side test and take profit at 50%...
I estimate that we will get a nice entry into long, after a completion of an extended flat.
Need to complete wave C in the form of an ending diagonal.
Anyway, this is a forecast, with a likely structure
My prior post noted that the SPX could rally into September and reach 3300.
On 5/3/19 the Russell 2000 (RUT)- gave several powerful bullish signals. RUT has been lagging and is still below its all-time high. However, on 5/3/19 it did make a new
post December 2018 rally high, in the near term its stronger than the SPX. More importantly the wave structure...
RUT is practically neutral at the moment as the 1D Channel Down (RSI = 46.549, Highs/Lows = -4.0275, B/BP = -30.2779) keeps the index bearish while 1W (excluding the early Dec - late Jan extreme) supports it (RSI= 49.965, Highs/Lows = 12.4371) from a greater fall. So far Russell is a no-action asset but we are willing to go long on the upward break-out of the 1D...
Over the past week, my tone has switched a little more bearish. I was advocating for a blow-off top in equities before this cycle ends, however, on a second look at the data the leading indicators are continuing to show weakness over the coming 6 months. Certain aspects of the economic data are positive however, which makes it difficult to be outright bearish or...
From the previous idea (see attached: "Russel leading the consolidation pack") you will know that Russell in many ways has been acting as a leading indicator for US Equities.
This is interesting timingwise, especially when the break to new highs in S&P and NQ occurred was not comparable in Russell. So here we are now only needing to track the 1480-1475 region....
The Russell 2000 Index, which tends to move before the S&P 500 Index (SPX) has broken below support with strength.
On the chart above we can see that the RUT broke through EMA50 and EMA100 like hot butter. This can lead to a retrace as far down as 0.618 Fib. just to start, it can go lower.
The MACD is entering the bearish zone with plenty of room left for more...