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IWM trade ideas

Opening (IRA): IWM Jan 19th 157 Short Put... for a 1.58 credit. Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. As I mentioned in my earlier post (See Below), shorter duration is probably paying, but I already have rungs on in the Nov 17th, Dec 15th, and Dec 29th expiries, so going out to 2024 here. Naturally, I'll sell in shorter duration if I can get in at strikes better than what I currently have on.
AMEX:IWMLong
by NaughtyPines
Russell 2000 is CHEAP relative to S&P500AMEX:IWM long vs AMEX:SPY short -------------------------- This is a "spread trade" between two indexes which is sometimes called a "pairs trade". Typically a "pairs trade" is between two similar stocks in a similar industry whose fortunes are tied together to a similar end user or buyer. Imagine NYSE:KO and NASDAQ:PEP (Coca-Cola vs Pepsi) as a decent example. The typical "pairs trade" swings back and forth on expectations from different economic environments. The Russell 2000 ( AMEX:IWM and CME_MINI:RTYM2023 ) can be influenced by perceptions of interest rates and projections of economic activity. The rationale is that smaller companies like those in the Russell have higher dependency on borrowed money and will be hurt more in an economic contraction. They don't have the international reach and have more risk to the domestic economy and have lower borrowing capacity, which makes them overall more risky. This isn't necessarily true, but it is the way the market views this trade and what gives it the potential to generate returns. What this ratio tells me here is that expectations are very low for Russell 2000 companies and very high for S&P500 companies and that there may be risk to that assumption. Therefore, we should research into the actual facts and see if that is true. The fact is that here at current levels the Russell2000 has lagged the S&P500 Index by 30% from the high in 2021 but in order for this ratio to move back to the levels of 2017-2018-2021, it would need to advance by over 45%. How much do we risk in this trade here? The average "monthly" range in this ratio is about 4%, so we can risk about 4%-5% and admit we are wrong if the ratio slides under 0.41 (the bottom of the green box). The upside? Let's see how it moves, but the goal initially would be a gain of 3x the average monthly range or 12%-15%. Tim 11:11AM EST 5/1/2023
AMEX:IWMLong
by timwest
16
IWM - the small caps get smallerBearish pennant "may be" done here. Above 203 on IWM and the idea is probably INVALID. I've pointed out the SPY/IWM monthly bull flag before (idea is linked below). If correct, it shows IWM losing considerably to the rest of the market. Why? Well I'm still wary of the Banks even though it's been a minute since anyone has really thought they are a problem. Interesting as KRE still looks completely bearish. I believe IWM will lead the correction with Tech staying stronger for a short while. IWM bear pennant is hinting at a larger correction for the market, however if it's an ABC it would also be a wonderful buying opportunity when it's finished. Good luck!
AMEX:IWMShort
by the_sunship
10
Russell is dancing on the clif"The Russell 2000 index (IWM) is currently displaying a weak and bearish pattern. After a significant downward move, IWM formed a substantial symmetrical triangle, which is typically considered a bearish pattern, often referred to as a bearish pennant. Around mid-July, the index broke out to the upside from this symmetrical triangle, marked with a circle. At that point, it seemed that the Russell was poised for an upward trend. However, a lesser-known pattern known as the 'death hook' emerged. The death hook, or fake breakout, is a potent trend reversal pattern that tends to occur during situations of fake breakouts or breakdowns. It appears that this pattern has manifested in the case of the Russell. This suggests that the breakout was deceptive, enticing smaller market participants to enter the market before reversing course and moving sharply downward. While a minor bounce may occur, it's expected to be short-lived. In all likelihood, the price will eventually break down from this bearish pattern and continue its descent. The only potential scenario for the bulls to regain control is if they intervene decisively, triggering another breakout to the upside accompanied by strong trading volume."
AMEX:IWMShort
by Consistent_Trades
$IWM Bullish Daily Close AMEX:IWM Small Caps had a Bullish Daily Close. Tested my support level. Small caps will lead the broader market. The IWM is more sensitive to liquidity. I have been long since the blue arrow. A "double bottom" is a bullish reversal pattern that occurs after a downtrend and is characterized by two consecutive lows at a similar price level, followed by a breakout above the pattern's neckline. This pattern suggests a potential reversal from the downtrend to an uptrend. A "false breakdown" occurs when a price breaks below a support level but quickly reverses and closes back above it. This can be interpreted as a bullish sign, indicating that the selling pressure wasn't sustained, and buyers stepped in to push the price back up. The idea that "the best moves come from failed moves" is a common adage in trading and investing. It suggests that when a market or a security initially breaks out or breaks down and then reverses, it can lead to strong price movements in the opposite direction. This is often attributed to the idea that traders who were positioned on the wrong side of the initial move are forced to close their positions, contributing to the momentum in the opposite direction. It's important to note that while these concepts are commonly discussed in trading circles, they are not foolproof strategies. Technical analysis is just one approach to understanding price movements in financial markets, and it should be used in conjunction with other forms of analysis and risk management strategies. Markets can be unpredictable, and there is no guarantee that any pattern or signal will always lead to a profitable outcome.
AMEX:IWMLong
by AlgoTradeAlert
2
IWM - Rising Trend Channel [MID-TERM]🔹Rising trend breaking downwards in medium long term. 🔹Between support 170 and resistance 199 in Rectangle Formation. 🔹Broken through support at 188, indicating a falling direction and predicting further decline. 🔹RSI curve indicates a potential early indication of a falling trend in the price. 🔹Technically NEGATIVE for the medium long term. Chart Pattern: 🔹DT - Double Top | BEARISH | 🔴 🔹DB - Double Bottom | BULLISH | 🟢 🔹HNS - Head & Shoulder | BEARISH | 🔴 🔹REC - Rectangle | 🔵 🔹iHNS - inverse head & Shoulder | BULLISH | 🟢 Verify it first and believe later. WavePoint ❤️
AMEX:IWM
by wavepoint99
IWM - Rising Trend Channel [MID-TERM]🔹Breakout resistance 179 in double bottom formation. 🔹Approaches resistance at 198 potential NEGATIVE reaction; upward break POSITIVE. 🔹Technically NEUTRAL for medium long term. Chart Pattern; 🔹DT - Double Top | BEARISH | 🔴 🔹DB - Double Bottom | BULLISH | 🟢 🔹HNS - Head & Shoulder | BEARISH | 🔴 🔹REC - Rectangle | 🔵 🔹iHNS - inverse head & Shoulder | BULLISH | 🟢 Verify it first and believe later. WavePoint ❤️
AMEX:IWM
by wavepoint99
IWM Symmetrical Triangle Hi all, this morning I want to make a post on IWM, one of my personal core holdings. For those who do not already know, IWM tracks the Russell 2000, which is a collection of the top 2000 small-cap US equities. Fundamentally, we are beginning to see default rates jump within smaller companies and poorly equipped balance sheets not being able to handle the pressure. Looking at the sector weightings, I see 16% tech, 16% healthcare, and 15% industrials. These industries rely on debt for a large majority of their growth. Lots of small-cap companies rely on floating-rate debt (interest payments rise with higher rates) due to creditors wanting higher yields for taking on the perceived risk. Also, lots of these 'cheap money notes' are beginning to mature and will continue into 2025. When these companies need to acquire new debt, creditors will either A. require much higher yields than before or B. not provide any debt whatsoever. Yields are a huge driver for growth. Technically, I'm seeing a symmetrical triangle pointing to the downside. As we've completed a 5-wave move, we could see a sharp downturn for IWM.
AMEX:IWMShort
by K_Oneill
Monday Market Update: SPY, QQQ, IWMHey everyone, Posting my Monday market outlook. Targets are as follows: SPY: Bullish Condition: 358.36 Bearish Condition: 456.18 High target (if bullish condition) 464 Low target (if bearish condition) 450 IWM: Bullish Condition: 197.58 Bearish condition: 195.99 High target (if bullish condition) 200 Low target (if bearish condition) 192 For tech, I am looking at 385 to the upside. If that is broken the immediate targets are 389 followed by 391. If we break to the downside, the targets are 378 followed by 375. My thoughts, Safe trades!
AMEX:IWM
by Steversteves
5
IWM Bearish Engulfing +5 CandleThe IWM ETF which tracks the Russel 2000 index put in an outside reversal, or bearish engulfing, candle today which eclipsed the 6 prior daily candles. When the body of a price candle completely engulfs the prior candle it is called a bearish engulfing candle. Since todays candle also engulfed the 5 candles prior to yesterdays it is called a bearish engulfing plus 5 candle(BE+5), for a total of 6 candles that were eclipsed by todays candle. The more candles that are engulfed by an outside reversal candle the more bearish the move and outlook. Raising your stop-losses and/or taking some short bets against the market isn't a bad move here on an outside reversal day like today was, especially if markets close down going into the weekend. If markets close red on a Friday, they tend to close red the following Monday as well.
AMEX:IWMShort
by PrepForProfit
Opening (IRA): IWM November 17th 170 Short Put... for a 1.74 credit. Comments: My weekly IWM short put in the shortest duration contract where the <16 delta is paying around 1% of the strike price in credit to emulate dollar cost averaging into the market without actually being in stock. The fact that I'm having to go out to November to do this is a testament to how crappy premium is at the moment, but will look to add in shorter duration should we get an uptick in volatility and/or weakness.
AMEX:IWMLong
by NaughtyPines