Our account is showing a good profit after shorting the Russell 2000 index at 2:00 Thursday afternoon and again at the same time on Friday. Validating our view, the R2K cratered in the last two hours of both days' sessions.
To expect Two O'Clock Charlie to deliver such a bomb every day from now on would, of course, be ridiculous. This chart shows two technical signs of a likely near-term snap back:
To expect Two O'Clock Charlie to deliver such a bomb every day from now on would, of course, be ridiculous. This chart shows two technical signs of a likely near-term snap back:
- The index is lurking at the bottom of a one-month trend channel on the 4-hour Heikin-Ashi.
- The index is extended from the 50-period moving average.
Comment:
We offset 2 contracts just now for USD 460 profit on USD 1210 margin. Let's see what the rest of this week brings...