Opening (IRA): IWM February 16th 149 Short Put... for a 1.59 credit. Comments: Targeting the <16 delta short put in the shortest duration paying around 1% of the strike price in credit.Longby NaughtyPinesUpdated 1
IWM - ready to make a move?AMEX:IWM IWM with a beautiful retest of the breakout from this descending triangle. Target is ~181, aligned to fib extension and measured move from the last two touches in this descending triangle. Be aware of AVWAPs that may offer resistance at 173 and 177.Longby Ben_1148x2223
$spy $iwm Head & Shoulders could be forming Most beaten up sector out there. Could see a dash for trash through year end from PM's looking for some alpha during ill-liquid daysby shawnsyx680
Opening (IRA): IWM April 21st 162/July 21st 190 LPD*... for a 19.29 debit. Comments: Long the -90 put in July, short the +30 put in April; short delta hedge against a long delta portfolio. Cost basis of 19.29 with a 170.71 break even on a 28 wide. * -- Long Put Diagonal.Shortby NaughtyPinesUpdated 5
IWM wave B or 2 down is ending rally to 180plus Last week I posted a target of 161.8 to end wave 5 of 1 or c down The chart posted is the update to the abc rally to which we need under both wave counts we should now see a sharp wave C up or 3 by wavetimer114
Weekly Update: Do Small Caps Still Lead the Broader Markets?We've all heard that the small capitalized publicly traded companies lead the larger cap companies, more so featured in the broader indices. A quick look back shows the Small Caps Topped in November 2021, whereas the Nasdaq and SP500 did not top till January 2022. Subsequently, the IWM bottomed in June of 2022, and it took the NDX and SPX till October of 2022 to form a bottom. So it appears we do not have to go back too far to see this phenomenon is still valid. If this price action of leading the broader markets continues to persist, then the IWM is now poised to literally "Drop like Rock". A quick observation shows the small caps are around their lows bouncing slightly for wave 2 in our primary c-wave down. You can read my prior posts on the SPX and NDX indices but it appears if you want to know if the recent bullish feeling rally in the DJIA, NDX and SP500 has sustainable legs...look no further than the IWM. Best to all, ChrisShortby maikisch9
Puts at retestPrice is testing the broken support now resistance of the bearish flag. I have puts as described. I think the next week is goin to be red. We could have a fake out of the resistance, opportunity to buy more puts.Shortby ArturoLUpdated 1
Wave and Pattern "Force" in actionIWM wave and pattern force "action" or urges." Notice the 5 wave push down (not elliot) as revealed by the poc leveling off at w2 w4 consolidations. Then the down exhaustion and pop to the short seller zone just below "neutral unwound." The space between avwap from the top, and 50% range. Note where poc is. The three big horsemen w gravity, or magnetism. Price tends to unwind to neutral unwound and traders knowing that will tend to step in front "the shorter zone" to exit their longs off the bottom., to get filled. Then tends to "recommit." The common morph would be 12345 down, inverted h&s up to neutral unwound..wedge up and box consolidation up and probe for the week side. ONce the weak side is revealed they would tend to push into it. To a lesser extent they would trap at that point. It's tends to be rangers in charge 70-80% of the time and trender's (big order slow agenda) in charge 20-30% of the time. When one side asserts over the other there is usually a reaction w a biigger (market order chase price candle) as the other side has to "give in" and scramble for the exit an or flip sides. 50% retraces tend to rule, followed by avwap which gives bias to 50%, followed by poc which tends to give bias to each of the others. They tend to all comes within close proximity of each other as the day goes on. The days neutral unwound (50% range/vwap) tends to give bias to the opening 1 min range. If you run that neutral unwound range thru the day note how many times price moves thru it, to it on a normal range day, perhaps 10-20 times on say a 1,2,3 min chart. vs a trend day..may return to it or touch if 1-5 times. Educationby chartmojo8
Opening (IRA): IWM Dec/Jan/Feb 152/144/136 Short PutsComments: Targeting the <16 delta strike paying around 1% of the strike price in credit at strikes better than what I currently have on. December 15th 152: 1.53 credit January 19th 144: 1.51 credit February 16th 136: 1.37 creditLongby NaughtyPinesUpdated 0
Opening (IRA): IWM Dec/Dec 29th/Jan/Feb 154/151/146/141... short put ladder. Comments: Adding on weakness at strikes better than what I currently have on, targeting the <16 delta strike to emulate dollar cost averaging into the broad market. December 15th 154: 1.60 credit December 29th 151: 1.63 credit January 19th 146: 1.49 credit February 16th 141: 1.50 creditLongby NaughtyPinesUpdated 1
Rolling (IRA): IWM November 17th 170 Short Put to December 15th... 168 for a .43 credit. Comments: I originally collected 1.74 for the 170 (See Post Below). Rolling it to at the money for a .43 credit; 2.17 total collected. This was my last straggler in the November expiry ... .Longby NaughtyPinesUpdated 0
Opening (IRA): IWM Dec 19th/Jan 19th 146/142 Short PutsComments: Squeezing in a couple of extra rungs here at strikes better than what I currently have on, targeting the <16 strike paying around 1% of the strike price in credit. December 29th 146: 1.47 credit January 19th 142: 1.47 credit After this, will primarily look to do "housekeeping" trades running into the end of the year ... .Longby NaughtyPinesUpdated 1
Possible retestWe may see a retest soon. I'm speculating and buying calls expiring on 11/03. I may buy more tomorrow and Friday if price action helps. The ETF is clearly oversold and hitting a strong support. We might have a couple of green weeks in he near future. Longby ArturoLUpdated 1
Calling all investors!Overview The Russell is at a potential attractive buy area for long-term investors. The Details The Russell ( FX:US2000 ) stock index is in a retrace move. Price is currently between the monthly 50 and 100 SMA's. Historically, buying when the price is between the moving averages has been a favourable entry area for long-term investments. Things to Consider Recession could be on the horizon for the US. This would likely drive prices lower, especially for the Russell 2000. Using an ETC, such as IWM, is often better for investing in stock indices than futures or OTC products. Other stock indices may decline further before reaching new highs. The positive correlation between stock indices could bring the US2000 down further. Longby Samuel_Morton_Trader0
$IWM: Huge down trend signalAMEX:IWM : Down trend here points to a move that can wipe out the entire uptrend since the COVID bottom. Signal confirms tomorrow on close, valid while below the area where distribution happened (the area with the highest trading activity while sideways before breaking down) 🚨🚨🚨 Best of luck, stay safe out there. Cheers? Ivan Labrie.Shortby IvanLabrie4
Will Russell 2000 Lose 24% of Value?Russell 2000 Testing key level. Would make sense to get a bounce from here, but the 2 year downtrend clearly shows bear pressure. If we break 159 next target is 145 If we get back inside of the triangle, I think this analysis is invalid and we might continue upwards ps. This is weekly chart so this will take time unless we get some kind of catalyst Active Trades GOLD , DYDX and XRP -PalenTradeShortby PalenTrade222
Spx Bounceok we're getting a recovery rally, but be aware tomorrow they could sell down to create one more low which I would think would be a bear trap. I can't say it's THE "bottom" but we could be starting to make a bottoming pattern here. RSI needs a reset, watch NQ and tech especially for an outperformance rally if I'm correct. Good luck! Long07:11by the_sunshipUpdated 212130
$IWM - At trendline supportAMEX:IWM Sitting on a trendline that has previously provided support. If a reversal is in the cards, this is the moment. If not, $159 is the next stop. Here are the support areas below: $159 $144 $130 It is still trading at $2019 peak level. by PaperBozz1
IWMLong here off support Target is 170-171 or trendline resistance. Too oversold here on major horizontal support at 162 dating back to 2020 Stop loss 162.00 Longby ContraryTrader3310
IWM breakdownIWM weekly chart looking very weak. It has been in a distributive range for almost 18 months now, making lower highs and holding a buy wall. After such a long period of consolidation could believe there is significant follow through on this move in time. Doesn’t send a great signal for the economy, yes the market is not the economy but usually small caps struggle when the economy struggles. Shortby mcmalloch2
A new low target achieved for IWM/SHYThis ratio is a key to the economic outlook. The bearish breakdown is confirmed, look for further downside in the markets. Shortby joshrleonard3
Advanced Bull Flag ConceptsHave you ever wondered why price action sometimes forms a bull flag pattern? Have you ever wondered if there is a way to predict whether a bull flag will break out before it actually does so? In this post, I will try to address these questions by presenting a couple of theories about the nature of bull flags. Bull Flag Theories (1) The flag structure of a bull flag tends to form along Fibonacci levels, with the ideal flag proportion being an approximated golden ratio to the flagpole; and (2) Fibonacci and regression analyses can provide useful insight into whether price will successfully break out of its bull flag pattern, sometimes long before price even attempts to do so. I will try my best to clearly explain both theories in detail below. Note: Although this analysis is also generally true for bull pennants, bear flags, and bear pennants, to keep things simple I will focus solely on bull flags. Additionally, this analysis is generally true across timeframes. Part I - The Basics of a Bull Flag First, let's begin with the basics. As shown in the image below, bull flags form when an asset is in a strong uptrend. The uptrend forms the flagpole of the bull flag structure. The flag structure forms when price consolidates, usually in a falling trend. This consolidation phase is often characterized by price oscillators rotating back down while the price retraces only a small part of its prior upward move. From a market psychology perspective, bull flags often form when most market participants who bought the asset continue to hold it expecting the uptrend to resume, while only a minority of market participants sell (or short the asset) as its price corrects downward. The bull flag pattern is a continuation pattern because it reflects the market's general expectation that price will eventually resume its upward move. Once the price definitively breaks above the upper channel of the flag (often with strong momentum and high volume), the bull flag pattern is validated. Upon breakout, the expected move up is equal to the vertical height of the flagpole. Part II - The flag structure of a bull flag tends to form along Fibonacci levels, with the ideal flag proportion being an approximated golden ratio to the flagpole Here's where things begin to get interesting. Below is the golden ratio. Two quantities, a and b (where a > b ), form the golden ratio if their ratio is the same as the ratio of their sum to the larger of the two quantities. (See the equation below) The equation above shows the Greek letter phi which denotes the golden ratio. Phi is equivalent to a/b when such ratio is also equivalent to (a + b)/a. Although bull flags can take various forms, it is my hypothesis, based on chart analysis and research, that the most perfectly structured bull flags (ones that also have the highest probability of successful breakouts) occur when the flag forms a golden ratio to the flagpole. Mathematically, this means that the vertical height of the flagpole is equivalent to (a + b) and the vertical height (i.e. the width) of the flag is equivalent to b. This is also to say that price retraces down to the 0.382 Fibonacci level as measured by applying Fibonacci retracement levels along the flagpole (or to the 0.618 point on the vertical height of the flagpole if one measures from the bottom to top). I realize that this can be quite confusing, so let’s walk through some visualizations. Let's first visualize this hypothesis using the golden rectangle. Below is an image of the golden rectangle. A golden rectangle is composed of a square (with sides equal to a) and a smaller golden rectangle (with width equal to b and length equal to a). Now let's rotate the golden rectangle to better visualize the hypothesized flag pattern. The bull flag is hypothetically an approximation of the golden rectangle, whereby the width of the flag is in a golden ratio approximation to the length of the flagpole. In the illustration below, there are multiple bull flags contained within a Fibonacci spiral. The spiral is made up of golden rectangles, with each larger golden rectangle containing a smaller golden rectangle inside it. The smaller golden rectangle is the flag structure, and the length of the larger golden rectangle is the flagpole. One can think of the Fibonacci spiral and the golden rectangles as a series of bull flags that build on top of each other in a repeating pattern. In this diagram, price is represented by the increasing length of the sides of each golden rectangle. In other words, the price on a chart can be seen as spiraling higher after each bull flag breakout. Of course, not all bull flags form a structure that approximates the golden ratio, but it is my belief that in forming a bull flag, price action is aspiring to achieve as close of a golden ratio approximation as it can. I believe that the bull flags that best approximate the golden ratio structure also present the highest probability for a successful break out. To learn more about Fibonacci spirals, including the golden spiral that Fibonacci spirals approximate, you can check out this Wikipedia article: en.wikipedia.org Part III - Fibonacci and regression analyses can provide useful insight into whether price will successfully break out of its bull flag pattern, sometimes long before price even attempts to do so. To see how Fibonacci levels and regression analysis can give insight into whether a bull flag will break out or break down before it does so, let's consider an example. Let’s consider the massive bull flag that the iShares Russell 2000 ETF (IWM) formed in 2021. In 2021, the monthly chart of IWM formed what appeared to be a bull flag, as shown below. Now let's see why Fibonacci analysis and regression analysis were warning that this bull flag was not likely to break out successfully. First, IWM's price did not retrace to a Fibonacci level before attempting a breakout (when using the pole as the Fibonacci retracement reference point). In the chart below, we see that price tried to break out, without even so much as retracing down to the highest Fibonacci retracement level: $196.71. By not undergoing Fibonacci retracement, price did not give its oscillators the opportunity to rotate back down fully. Instead, price remained overextended at the time it attempted to break out. Now let's look at regression analysis. Below is a log-linear regression channel that contains IWM's entire price history. As noted in my prior posts, a regression channel simply indicates how far above or below the mean (or average) price an asset's current price is trading. In the regression channel above, the red line is the mean price, the upper channel line is 2 standard deviations above the mean, and the lower channel line is 2 standard deviations below the mean. A successful breakout of the bull flag would have taken IWM's price way above its regression channel, to a level that is too many standard deviations above its mean price for us not to question the probability of the breakout’s success. Achieving the full measured move up would have been extremely unlikely, assuming that the regression channel is valid and that price tends to revert back to its mean over time. What was more likely than a breakout was a breakdown, and a reversion back to the mean, which is what ended up happening with IWM. Another interesting note about IWM’s bull flag is that it presented a false breakout in November 2021. This false breakout was presenting multiple warnings signs including being a UTAD test of a Wyckoff Distribution. As shown below, however, another important clue that the November 2021 breakout would likely fail was that the breakout was not confirmed when comparing IWM to the money supply (M2SL). See the chart below. One can interpret this chart to mean that in late 2021, IWM’s price was rising because the central bank was increasing the money supply, but not due to improving strength of the underlying companies that comprise the ETF. Using the money supply as a ratio to an asset elucidates the true inherent strength of the asset's value. To understand more about why the money supply can be used in this manner, you can check out my post below. Part IV - Additional Comments I have a few additional comments. I usually use Fibonacci levels on a log-scale chart to identify Fibonacci spirals because Fibonacci spirals are logarithmic spirals. However, when using Fibonacci levels based on log scale, the ratios, percentages and numbers, can seem quite confusing because they are logarithmically adjusted. If you choose to replicate my process, please be mindful of this. While using log-scale charts is critical for higher timeframes (e.g. the monthly chart or higher), I have not identified much benefit to using it on shorter timeframes. In a prior post, I noted that Plug Power (PLUG) is currently forming one of the best-looking log-scale, golden ratio bull flags I have ever seen. If my above hypotheses are true, I would expect to see PLUG move dramatically higher in the years to come. For more information about PLUG, you can read my post linked below. (This is not a solicitation to buy PLUG. Please do your own research and carefully consider all risks.) At the risk of making this post too long and too dense, I just want to briefly note that it is also my hypothesis, based on observation and research, that the golden ratio is where many S-curve dilemmas are solved. If you don't know what an S-curve dilemma is and you'd like to read about this you can see my post below about Jumping S-Curves . In short, an S-curve dilemma is another way of conceptualizing the question of whether a bull flag will break out or break down. I hope that someone finds value in this post. I spent a lot of time studying, researching, analyzing, and cogitating the mathematical nature of price action to reach many of the conclusions here. Thank you for your valuable time in reading my post.Editors' picksEducationby SpyMasterTradesUpdated 5151694
$IWM nearing last year low Weekends are great to zoom out and look at the bigger picture. 3M and 12M thus Quarter and Year Which for IWM (as many others) don't look particularly well, apart for the shorts ; - ) Will we see another 2d on the Y (?) or the 'traditional end-of-year-rally' Shortby RobinsOptions1