For the time being I’ve replaced QQQ with this vehicle, an ETF for playing the Russell 2000, because it seems to have a stronger following in the chat room. I also like the way the bullish pattern has played out, especially when it triggered what turned out to be a perfectly timed ‘mechanical’ buy three weeks ago at the green line. It would do this yet again on a pullback to the red line, although the opportunity looks like a longshot bet to materialize at this point. More interesting is the 169.43 ‘D’ target, which not only appears likely to be reached, but to generate a tradeable top that we can short with out-of-the-money put options. Stay tuned, and don’t hesitate to flag opportunities to get long in the Trading Room, since they can be vetted by our own experts. ______ UPDATE (Oct 20, 5:07 p.m.): IWM looks like it’s about to do a Lomcevak, but bears shouldn’t get their hopes too high. It’s natural for this Russell 2000 vehicle to look winded as it hovers just shy of the record peaks recorded earlier this year. You can see buyers’ fatigue in this chart. But it looks too obvious to produce a windfall for those betting on a steep downdraft. More likely is a modest swing trade, so stay tuned to the chat room if you’re interested.
IWM – Russell 2000 ETF (Last:160.76)