This sorry sack of suet took off along with just about everything else when Friday’s short-squeeze seized the proletarian mind. The move follows a decent impulse leg that lifted IWM from 214 to 228 in a little more than a week, so we can at least pretend as the new week begins that the rally’s going somewhere. The ‘D’ target at 231.20 is the best I could see for the near term, so use this pattern to trade it, ideally mechanically. Minimum upside for now is p=224.47. _______ UPDATE (Oct 4, 5:15 p.m.): The ‘mechanical’ entry is a non-starter so far, since the short-squeeze begun from Friday’s low didn’t even reach the red line (224.47), let alone our ‘sweet spot’ for this kind of trade. Any pullback below 217.74 (point ‘C’) will negate the trade. ______ UPDATE (Oct 6, 8:40): If, as the saying goes, a rising tide lifts all ships, then this concrete garbage barge is about to get a boost from short-covering in some of the hotter indices. Even then, it’ll take some strong juju to push the rally above any significant prior peaks. The first lies at 229.84. _______ UPDATE (Oct 7, 11:52 a.m.): Today’s short-squeeze leap past p=223.49 has made a follow through to at least 230.22 all but certain.
IWM – Russell 2000 ETF (Last:219.85)