HD Supply Holdings (HDS) long.All description on the chart.
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RUSSELL 2000
Citizens Financial Group (CFG) short.All description on the chart.
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TZA - Short this flawed -3x ETF with stop just above R1This is triple leveraged inverse Russell 2000 ETF. It is flawed due to negative compounding in downtrends.
Diary | 2/5/20 | RUT SpreadDescription:
Selling into some weakness on the RUT.
Justification:
- Directional Play? No, neutralizing delta's on existing RUT positions.
- Technical: Below the 20 and 50-day moving averages.
- Fundamental: Bullish long-term.
If/Then:
- Take profit? @50%
- Where will you hedge? $1725
Strategy Details
- Short and Long legs: $1615, $1600
- Short Delta: 0.14
- Duration: Feb 21 Expiration
The Kraft Heinz Company (KHC) long.All description on the chart.
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TNA - Buy and hold to $130-135The third major buying opportunity of this security's life is now. If the coming advance mirrors the previous advance, then $130-135 should be hit (see the two back-to-back Fib drawings). This is a monthly chart and the security is volatile, so expect plenty of choppiness along the way.
Break and restest of channelBreak was on higher than average daily volume. If retest is successful and we don't fall back into the channel resistance should turn into support. Monday will tell. Flat for the weekend. Next target $169.
RUT - breakout is finally hereRUT russell 2000 is at a new 52 week high
breaking above very hard resistance and consolidating above 1600
retested area which acted as support and now breaking to new highs
looking at the S&P as comparison RUT is lagging and looks like running in the next few weeks
How the Russell 2000 indicates a correction in the S&P 500The Russell 2000 small cap index has been a prevalent lagger throughout the whole US equity rally into all-time highs. This is of concern for the health of the economy and the health of the S&P 500 index. The small-cap sector reacts the most to economic conditions and monetary policy, being the most affected if they cannot make new highs and are over 8.5% away from all-time highs we can infer that a stronger correction of 8-10% may occur in the S&P 500.
The S&P 500 is full of companies that have been artificially inflated by stock buy-backs and also monetary policy allowing for cheaper borrowing. There is a healthy retrace coming out to catch down to small caps since they have not relished in the strong economic conditions. Which presents another concern, is the economy that strong to begin with? If there is a correction, there could be more buyers in both the S&P 500 and Russell 2000 companies to help markets reach all-time highs yet again.
Are small caps telling us something?Disclaimer: The above is just an idea for your entertainment, not a trading advice!
IWM Volume TrendVolume spike very likely soon! Trend has been:VOLUME UP=PRICES DOWN. Watch for initial divergence where IWM could spike before correction. Eyes on that volume! This is not necessarily a good place to go long on IWM but it certainly could make a strong move up before any correction. I am positioned mostly short on market but I've had a small "long" hedge in IWM call options. Small caps have been lagging behind market oddly- I cannot discern if this is a red flag warning to the entire market or small caps are about to catch up. The volume certainly tells a story worth reading and the the 36,000ft view tells me be very careful up here- market pressing upward with major decrease in volume is a recipe for a major PIVOT down.
Russel 2k Long BreakoutIdea is to go long the Russel 2000 on further strength. Resistance has been tested multiple times with a consolidation (bullflag) near the upper range boundary. 4hr candle close has to be above recent high to enter longs.
Russell 2000 Price Forecast- All Time Highs?With new all time highs for everyone else, The Russell feels left out. If this beast gets too emotional, and wants to join in, I believe this is how it would look : )
- This is not financial advice. For Artistic purposes only.
