- For seven and a half months now, the small cap index has been rangebound between 2350s and 2080s
- In the futures market, non-commercials are heavily net short Russell 2000 mini-index futures. As of last Tuesday, they were sitting on 54,431 net shorts
- If small-cap bulls manage a breakout, the likelihood of non-commercials covering their shorts is decent – particularly considering the seasonality factor. The only thing is, there is still two months left before the year is out. So, it is equally possible stocks take a breather, suffer a mild selloff, hold support and then take off for a year-end rally. In this scenario, how far the rally goes will have a lot to do with if shorts give up or stay put
- Dow Jones Transport is breaking out today up nearly 11% at the time of publish, Small Caps often follow Transports.
https://hedgopia.com/wp-content/uploads/2021/11/Chart-6-1536x982.png
___________________________
✅ If you found this idea useful, hit the like button, follow & share.
✅ Follow for swing ideas, trade setups and weekly 0DTE income trades.
✅ Don't hesitate to post comments, opinions and questions.
💸 WHAT IS 0DTE TRADING?
The Chicago Board Options Exchange (Cboe) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Most options expire worthless and we take advantage of this by selling credit spreads to collect premium. This strategy allows us to profit if the market moves up, down or doesn't move at all. See profile to learn more!
- In the futures market, non-commercials are heavily net short Russell 2000 mini-index futures. As of last Tuesday, they were sitting on 54,431 net shorts
- If small-cap bulls manage a breakout, the likelihood of non-commercials covering their shorts is decent – particularly considering the seasonality factor. The only thing is, there is still two months left before the year is out. So, it is equally possible stocks take a breather, suffer a mild selloff, hold support and then take off for a year-end rally. In this scenario, how far the rally goes will have a lot to do with if shorts give up or stay put
- Dow Jones Transport is breaking out today up nearly 11% at the time of publish, Small Caps often follow Transports.
https://hedgopia.com/wp-content/uploads/2021/11/Chart-6-1536x982.png
___________________________
✅ If you found this idea useful, hit the like button, follow & share.
✅ Follow for swing ideas, trade setups and weekly 0DTE income trades.
✅ Don't hesitate to post comments, opinions and questions.
💸 WHAT IS 0DTE TRADING?
The Chicago Board Options Exchange (Cboe) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Most options expire worthless and we take advantage of this by selling credit spreads to collect premium. This strategy allows us to profit if the market moves up, down or doesn't move at all. See profile to learn more!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.