It's been a tough yearHaven't posted much because nice setups are hard to come by. This year has been very volatile so far. I do think we will see more of that in the coming weeks. One thing I have been looking for is for market to form another higher low. /NQ tested the 20sma wasnt able to hold so for tech I am watching what happens there. We could see another test of the lows or this can form a higher low as well.
On the other side I think small caps (RTY,IWM) can be a great short. Been watching this setup develop and I dont care to guess which way it breaks. If it cracks the lower trendline I will short and use that trendline as my SL. Same goes for upper trendline, that breaks and I will go for calls.
The best strategy for right now is to not be biased on market direction. Be flexible and able to change with market sentiment. For the most part I have been scalping and will more than likely continue until we see some sort of a trend develop.
M2K1! trade ideas
RTY1-IWM-Russell 2000The OVERALL INDICATOR As it moved last week the most to the downside out of all indices. I've highlighted the important zones to the upside (supply zone) and downside (demand zone). Overall I'm expecting a bit more downside (1 to 2% max) drop before earnings and Fed kicking back markets up for a week or two. Mid February . Once Markets go up to 100 ema, i will continue the LONG TERM view shorting. Expecting a 20% drop overall on all equities.
Still Bullish - A Game of VolumeHave taken a step away from charting for a few days. Not because I wasn't interested or concerned, but that I simply had more important things to do than ponder my money.
I am unwavering in my conviction that this year will see new ATH in major indices. I will expect a nice bottoming structure to begin to form here.
We lost the first major volume support and tumbled from there. The VWAP as anchored from the march 2020 low picked out the magnetic price level as to where we would, at least temporarily find support.
I like this action, not only as a relief rally but as an important bottoming signal.
1: RSI is oversold and rebounding
2: We have heavy volume supporting
3: the Put/Call ratio is probably turning down from here
4: We have regained the secondary volume defined support level
Watch and see if it holds that secondary support (yellow) and then we see some action.
Stay safe out there, manage your risk.
Short the RUT forever? Maybe not.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:
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.
Don't get us wrong. If the RUT looks to get hammered Monday afternoon, we'll be sellers. But if it doesn't, we'll be offsetting contracts to take our profits, and ready to watch for fresh sell signals as the RUT reverts to the trend median (or farther) and the 50MA.