M2K1! trade ideas
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.
RTY - Daily Russell 2000Looking about cooked for now.
2/5 Setting up.
The 2282 was a brilliant SELL, it simply collapsed
from there 250 Ticks.
__________________________________________
Small Caps have no real hope, nor access to Capital.
Later in 2022 after 5/5 completes, this Index will lose
90% of its Price Value.
RUSSELL 2000 SHORTAs we could see, the Russel was going sideways many months. Now we break out of the $2107 support this week. And that is very bearish. If the price will further go down and can not come back to its support level, we could have a much bigger correction (15%). This theory is pretty simple to thought, there is no important support line than $1706 because in this price range was mainly a bull run.
RTY UpdateOversold but that doesn't seem to matter anymore. Broke the support line today
If this is a bear flag or any other 2 step move then it appears small caps could tank until the Fed meeting. Then a Fed meeting pump.
Anyone wanna guess what the overlay is? Note, I did not change the time scale at all.