Small Caps Head & Shoulders IWM Russel 2000Clear head and shoulders forming on the daily chart. Tight price action below the 200 sma and above the 50 sma. Wait and see if it breaks through the 200 SMA and closes the monthly candle above the 200; I will allocate higher portion of my 401k to small caps. If it falls below the 50sma, wait to see what happens with pricing at the neckline. cash on the sideline with a limit buy after H&S plays out.
IWM trade ideas
IWM: Multiple S/R Lines Converging AMEX:IWM
Price broke a year long down trend line in July and found support on the trend line in Sept. Price now flirting with a squeeze between the 200sma and a S/R range tested multiple times since 2021. RSI and MACD showing positive movement and run to the upside. If S/R is broken next price range test 195/200.
$IWM Bearish Trading IdeaWe utilized the YS Trading Checklist to determine how we expect this trade to go.
1. News
2. Candle
3. Volume
4. CCI
5. Stochastics
6. Gaps
From the technicals, we determined that $IWM is poised to retrace back to support in the short term. Hence the trade I like is the $186 / $182 Put Debit Spread expiring 9 DEC 2022.
Opening (IRA): IWM December 23rd 156 Short Put... for a 1.67 credit.
Comments: Targeting the <16 strike in the expiry nearest 45 days paying around 1% of the strike price in credit.
This is more about not letting my IWM position get too short delta than about putting on an "ideal" premium selling trade. I still have an IWM short delta hedge on that is marking at around -60 delta (See Post Below) and had only one IWM short put rung on at the December 16th 164 (+23 delta at the moment), so the position was leaning more net delta short than I would like. This long delta additive trade will make my IWM position "net delta flatter."
Study of Swing Trade Entries using Stochastic, RSI and MA'sPlease read notes on chart first.
Yellow arrow and triangle breakout are points (time and place) at which you might buy calls for a swing trade. If your trade is based on 30m timeframe, you can still use 5m to fine tune your entry. Key is that you identify targets and stops based on your 30m chart.
Study white arrow on today's 5m chart for today's swing trade entry. For example, 11/11 181 call ~1.75 near when price was ~178.70, and now is over 3.00. (Price moved well today and this could be a day trade as well.)
UPDATE_IWM Harmonic Elliott Wave AnalysisOverview: let's review the key points of the pervious updates I have on IWM so far:
August 20th: Wave (X) top is in.
September 5th: We are in wave c of 3 of A of (Z) of 2.
September 27th: Wave III of A of (Z) of 2 is near completion.
Update: IWM has been following our expectations perfectly the whole time. Now, I see that we have peaked for wave B of (Z) of 2 and right now, we are in wave (b) of I of C of (Z) of 2.
Closed (IRA): IWM December 16th 145 Short Put... for a .76 debit.
Comments: (Late Post). Collected a total of 2.11 in credits. (See Post Below). Out today for a .76 debit. 1.35 ($135) profit.
This leaves me with two rungs -- the November 18th 163 (currently 14 delta) and the November 18th 173 (currently 33 delta), for a total of 44 long delta. Both of these are hedged off with a long put vertical in IWM (See Post Below), which is currently marking at -74 delta. I'll be rolling out the short leg of the diagonal tomorrow, which will decrease the short delta slightly, after which I will look to see whether I should add back in IWM long delta to make sure that I'm not too short/directional in this position. (33 long - 74 short = -41 delta). As part of this consideration, I also need to look at my portfolio delta as a whole to see whether it's okay to keep the IWM position net delta short, since it enjoys a close correlation with SPY (.95 3-month).
Since it kind of drives me slightly bonkers to leave positions skewed out (regardless of whether they can do double duty as a closely correlated broad market hedge), I'll probably end up adding some long delta back in.
Short idea #18- Why bet against trend?Hey all, I think IWM is going to drop in November; I am hoping it chugs slightly higher in the coming week as I am looking to short this name. This chart doesn't look particularly healthy, and it is clearly in a downtrend. I see no reason that trend won't stay intact, and I perceive IWM is going to be a very safe short when $SPY reaches $389/share. My predicted move is drawn out.
Rolling (IRA): IWM November 18th 152 Short Put to December 16th... 145 for a .58 credit.
Comments: With the 152 nearly at 50% max, rolling down and out to the strike paying around 1% of the strike price in credit. Total credits collected of 1.53 (See Post Below), plus the .58 here, for a total of 2.11. Realizing a gain, reducing risk, reducing buying power, and improving my break even all in one swoop ... .
IWM and TD Buy SetupIWM formed the reversal pattern with TD Buy Setup at a significant support area. I waited for the bullish price flip signal and decided to use the previous bar as SL. Interestingly, tunnel line and TDST L. is the same level for TP; thus, the following setup has been applied. Don't forget to calculate your position well before trading. Good Luck!
$IWM Small Caps at Inflection PointI don't post a lot about indices because stock setups drive the majority of my decisions.
I leave the general market to folks that r smarter than me.
That said, am aware of inflection points & $IWM small caps is at one.
A level bears want to defend, otherwise, you'll see them panic.
Opened (Margin): IWM 144/154/182/192 Iron Condor... for a 3.34 credit.
Comments: (Late Post). Another "synthetic short strangle" I put on on Friday, with the short legs set up around the 25 delta, the longs out from there to obtain a 50% ROC at max metric. 3.34 credit on buying power effect of 6.66; 50.2% at max; 25.1% at 50% max.
Will primarily look to roll paired legs (short call/long put, short put/long call) to delta balance. For example, the short call finished the day in .52/$52 worth of profit, the long put .43/$43, so I would look to roll the short call and long put down simultaneously to lock in that realized gain and to delta balance.
TOP WAVE STRUCTURE I am still in 100 % CASH > I loved how we held my 3578 .But I am ok with letting this trade show itself >I hit my min target 3511/3490 into the time cycle >BUT I need to see Mr Market show me the MONEY still have to get past the 20/22 then I will be happy . Best of trades ! WAVETIMER