IWM trade ideas
Opening (IRA): IWM June 21st 180 Short Put... for a 1.82 credit.
Comments: Targeting the shortest duration <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. There is no July contract yet, but June is still paying at <16 delta ... .
More downside needed for small capsAMEX:IWM TVC:RUT CAPITALCOM:RTY small caps hit major resistance (the yellow zone) and finished the day with a shooting star candle. More downside is needed. This syncs with other indices NASDAQ:QQQ AMEX:SPY
IWM Russell2000 11% UP ?Russell 2000 index - exit from channel towards long, above average 150, depends on the drop in interest rates in the US, potential increase 11% & more.
Only an idea and not a recommendation for trading!
IWM liking this chart alot, leaning towards downside but in this market gotta be prepared for anything. entry sl on the chart hopefully itll pay both ways
IWM Russell showing double top, support tests next?double top pattern in play after IWM and RUT failed to breakout higher with the rest of the large cap indices.
patterns alone can be deceiving, but fundamental risks support this double top thesis.
banks risks, higher costs from supply chain constrains and or inflationary costs in play.
Higher rates may be finally hitting consumers and businesses as an extra cost in all forms of funding.
6 month to 1 year bear spreads make sense hear, so do deep in the money puts. For long positions, I would consider stops to protects down side in case it continues.
IWM Canary in the coalmine 5th wave diagonal still formingTOPThe iwm the index most quoted this year to move up %50% by most of the Talking wall cnbc well now trick and trap is now setup to take the $
Opening (IRA): IWM June 21st 169 Short Put... for a 1.63 credit.
Comments: Laddering out at intervals, targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market.
Will start looking at adding in shorter duration if I can get in at strikes better than what I currently have on.
IWM looking bearish?below the box we fall, in the box we range, above the box we reclaim the trend. am new to this style of trading. if you see something i dont, feel free to let me know.
IWM looking for empty spaceview the chart on the 7 min and it makes more sense, at least to me. smaller timeframe channels like to respect each other. maybe its a new thing maybe its not but its new to me. really interested in how this plays out. premarket tells all
IWM IWM, the ETF tracking the Russell 2000 index, is exhibiting a noteworthy alignment with the parabolic SAR indicator, indicating a potential momentum shift or trend continuation. Given this alignment, investors should maintain a keen focus on IWM's price action and behavior. Moreover, the upcoming release of the Consumer Price Index (CPI) data may serve as a significant catalyst, potentially influencing market sentiment and driving further movement in IWM. As such, market participants should closely monitor both technical indicators and fundamental data to anticipate and respond effectively to potential price movements in IWM.
🌟📈 Weekly Chart Technical Analysis for IWM! 📊💼Let's delve into the fascinating world of IWM and explore its weekly chart. Get ready for valuable insights and potential trading opportunities. 🚀📈
🔄 Cycle Analysis:
By analyzing the cycles, we've identified a cycle period of 48 weeks for IWM. Interestingly, we've divided each 48-week cycle into three distinct parts, allowing us to pinpoint key moments within the market's trajectory. Let's dive into the current cycle! 🔄📆
📈 Uptrend at 1/3 of the Cycle:
In this new cycle, IWM finds itself right at the 1/3 mark. It successfully broke out of the key resistance level at 190.8 back in December 2023, and this level has been retested, confirming its significance. As a result, we believe IWM is currently experiencing an uptrend. 💪📈
📉✅ Key Levels and Price Range:
Based on our analysis, we anticipate that over the next 32 weeks, IWM will remain within a price range of 203.54 to 228.70. Notably, the upper end of this range, 228.70, is closely aligned with the high reached in November 2021. Additionally, there is a Supply Zone located at 235.50, making this area a crucial zone to monitor. 📉🎯🔍
🔄🔎 Retracement Entry Opportunities:
For traders seeking a long entry, we recommend focusing on retracements within smaller timeframes, such as the H4 or daily chart. These retracements can provide favorable entry points with a potential profit of 12% and a risk-reward ratio of more than 2 to 1. This presents an enticing opportunity for mid-term investments. 🔄💼💰
📚🔍 Conduct Your Own Study:
As always, it's crucial to emphasize the importance of conducting your own research and analysis before making any investment decisions. Stay informed, stay vigilant, and make well-informed choices based on a comprehensive understanding of the market. Knowledge is power! 📚💡💼
Embrace the insights, seize the potential within IWM's weekly chart, and consider the captivating opportunities it presents. Remember, trading carries risks, so always exercise caution and diligence. Let's make the most of these chances and aim for profitable investments! 💪💼💹
#IWM #WeeklyChartAnalysis #UptrendForecast #RetracementEntryOpportunity #MidTermInvestment 📈🔍💱
The next price zone to watch IWM broke out of a daily trading range last week, and climbed towards a weekly resistance zone.
The yellow price zone that I marked in the chart represents a weekly structure that acted as support... now should become resistance.
The 61.8 Fib level could also generate some selling pressure on IWM's price.
Reasons to be cheerful?Both the S&P 500 and NASDAQ 100 closed at fresh record highs on Friday. The Dow ended a tad lower, pulled back by a fall in UnitedHealth which is its major constituent by weighting. Meanwhile, the broad-based, domestically-focused mid-cap index, the Russell 2000, tacked on over 1%, but remains around 15% adrift of its own record highs from back in November 2021. That’s not the only US stock index which has failed to hit a new record this year. The Dow Jones Transportation Index is currently around 7% below its own all-time high, which, like the Russell 2000 (and also the NASDAQ 100, although that old record has been well and truly surpassed) was hit back in November 2021. Does this tell us anything? Perhaps it does. It suggests that there is still a lack of breadth in the rally which, since it began in October last year, has had plenty of time to broaden out. Yet it hasn’t, as investors still lack the confidence to look outside the favoured few. Just look at NVIDIA. It closed out at another record high on Friday, and has added 3% today alone. It is now up over 30% from the low hit just prior to its earnings announcement ten days ago. There will be plenty of traders and analysts who say, ‘Who cares about the Transports and Russell? It’s new technologies which are changing the world, not airlines, trains and small domestically-focused companies.’ We’ll see. In the meantime, the fourth quarter earnings season is drawing to a close with 97% of S&P 500 constituents having now reported. Analysis from FactSet shows that the latest S&P P/E ratios are above both their 5 and 10-year averages, suggesting some overvaluation. Bullish sentiment coupled with FOMO suggests that the path of least resistance is still up. But that sentiment can change quickly and often without warning. This week’s big events include Fed Chair Jerome Powell’s testimony in Washington on Wednesday and Thursday, with Non-Farm Payrolls on Friday.
IWM for MarchIWM is currently attempting to breach a notable resistance level. If successful, it may seek support in the lower part of its range or channel before making a subsequent move to break through the resistance.
$IWM Cup and Handle Just Formed!As we steam forward in this bull market, I think AMEX:IWM is getting ready for a big move. If we open Monday at ATH its blue sky breakout time. #IWM
Defining Target for Risk Reward: Maybe you shouldn't?The trade plan is broken up into parts. We have an objective and consistent entry, stop, and exit plan. Here I will be talking about the exit plan and setting targets that will give you a particular risk/reward ratio. There are no absolutes when it comes to what risk/reward you should be aiming for, a lot has to do with how you handle risk and loss and your overall understanding of markets.
Defining the stop (risk) is relatively easy compared to defining the target (reward). Mostly you need a clean set of statistics on an objective method. This will give you an average distance that the swing will run in relation to your method. The reward part of the equation is a function of how far your stop is to your entry.
There is no one-size-fits-all when it comes to trading. For many, it may be best not to set a target, but instead use something simple and objective like a moving average to exit the trade. This way, you get what the market gives you while incorporating consistency and objectivity into your exit plan. Keep it simple, objective, and consistent, and learn as you go. In the video, I make something up on the spot that may give you some ideas. I use a 20ema as a profit stop only after price has made a new high. It's simple, principle-based, and it's objective.
No matter what your method, knowing where you are in the swing cycle will help in defining entry, stop, and target, and this will directly influence the risk/reward ratio.
Shane
Opening (IRA): IWM May 17th 170 Short Put... for a 1.74 credit.
Comments: Back to short puts here, targeting the <16 delta strike paying around 1% of the strike price in credit. Just gradually building a position here at intervals.
IWM 5TH WAVE DIAGONAL HAS ENDED I now can label the rally as ENDED in the IWM . Most are looking at this rally as a break out I am worried if this breaks from here .If it does based on the P/C models we would break and it would be UGLY .
IWM long 170 . add 162 can keep sl at 154 , we are back at June 2018 lets in this snoozefest of an index, maybe time to wake up when nothings in its favour ,
contra call
Cup and Handle + Channel breakoutThe Russel 2000 has been in a steady range between 162 and 200 since January 2022 – more than two years now.
The current situation presents some bullish signals. This is the 6th time it's touching the upper side of the range. Generally, more touches on one side of a channel increase the likelihood of a breakout in that direction. Additionally, a substantial cup and handle pattern has formed, and there's room for RSI to climb on the weekly chart.
Resistance: 217.33 (R1 Pivot)
Target Price: 233.16 (R2 Pivot)
Support Level: 189.28 (P Pivot)
It's essential to exercise caution though, especially if the broader market corrects, which seems likely in the mid-term. A broader market correction always impacts the Russel 2000 as well.
IWM Long Term PerspectiveIWM saw a very strong bounce with triple positive divergence.
After a very unhealthy rally in the last couple of weeks, we have seen IWM struggle to go green on the daily.
With the RSI extended like this we could tap the trend line one last time before the Fed pivots and we rally into 2024. Then Crash.
IWM is a great representative of the true economy rather then the mega caps who blur everything.
There was a very large triangle pattern that was broken on the down side, which I can definitely see moving further.
If the GREEN support line is broken, I will close out my trades.
Opening (IRA): IWM April 19th 176 Monied Covered Call... for a 171.23 debit.
Comments: Buying stock and selling the -75 call against to emulate the delta metrics of a 25 delta put. This setup gives me a slight bump in premium over selling the 25 delta put due to call IV skew, along with built-in position defense with the short call.
Laddering out over time after flattening out at the end of the year. I'll naturally look to add in shorter duration if I can get in at strikes/cost basis below what I currently have on, but will probably continue laddering out to the end of the second quarter (June) for a bit here.
Will generally look to take profit at 50% max; look to roll out the short call to reduce cost basis further should price traverse the short call strike (since extrinsic is highest in at-the-money strikes).
