The Russell Index gave back surprisingly little of Monday’s vaccine-powered lunatic leap, all but clinching an eventual move to the 184.73 target shown in the chart. It looks sufficiently clear and compelling to suggest it may be a good place to attempt getting short, but I’d suggest doing so only if we are able to profit from the implied rally. Ideally, we’ll have a chance to get long on a retracement to p=163.41. A ‘mechanical’ bid there would require a 156.30 stop-loss. It may be possible to cut the entry risk using an ‘rABC trigger’ on a lesser chart. _______ UPDATE (Nov 18, 8:50 p.m.): The selloff in the final two hours offered a glimmer of sanity. It also could be taken as evidence that the dirtballs who have been working tirelessly to distribute shares before the wall of worry collapses are finding it increasingly difficult to complete the job. _______ UPDATE (Nov 24, 9:17 p.m.): Several subscribers appear to have gotten short after I posted a timely alert in the chat room. IWM went on to slightly exceed the 184.73 target before closing a hair below it. This is a longshot bet, since we are fading one of the most powerful rallies ever. Even so, a modest speculation was warranted because the target is so clear and compelling. I have not established a tracking position, but informally I’d suggest covering if this rabid little scumsucker pushes above 185.50. _______ UPDATE (Nov 25, 3:52 p.m.): IWM fell this morning to a low at 181.99 that would have produced a profit of as much as $520 per round lot for anyone who got short Wednesday at my longstanding target. A commensurate profit could have been reaped if you’d bought TZA, an ETF vehicle equivalent to being 3x short the Russell 2000. Since no one mentioned any of this in the chat room, I’ll be removing this symbol from the home page. However, I will continue to track it informally.
IWM – Russell 2000 ETF (Last:183.435)