Before FOMC, I believed IWM was poised to break thru fib ext 1.618 at 118.15. Now in two days, I now have a short term excess supply signal as IWM tested down. Circumstances changed. I have changed with them. I expect the fib 1.5x as a target 112.07. Back and fill.
btw elcololp, here's an intra-day chart of IWM showing the strong selling at the open after futures opened the mkt higher. This was a professionally engineered gap up designed to shake out players. Get many to go long and sell to them.
kilo1romeo
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Hi elcololp, I believe IWM will chop around pre-Thanksgiving week. resolutioin soon. I have a tactical short via TZA. left on and added to this morning to help my unrealized p/l on TZA. See the attached IWM chart. Pros obviously knew something was up w/China y'day. That is just an assumption, not an excuse. I am net long in my accounts and have been effective in using contra etf's and options to counter-balance on the way up. The only serious trimming i did was Mon Sep 15th as I reduced and add heavy SPXU, TZA & VXX. Took off all those Oct 20th. Thank you for your comment. Always feel free to ask questions. I welcome constructive criticism.
kilo1romeo
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Wow, I was WRONG! I'll follow up with another chart. Chop at a significant level should not have been a reason to call a down move on my part. This is the most likely reason for the turn around:
(Reuters) - China cut interest rates unexpectedly on Friday, stepping up efforts to support the world's second-biggest economy as it heads towards its slowest expansion in nearly a quarter of a century. I've attached an image of the Russell 2000 futures showing the overnight movement.
elcololp
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and now? Russell is to bad!!! bad closing what do toy think?