Posted by: rp on the 22nd of Dec 2011 at 10:37 am
here’s my 15 min IWM with targets for this pullback (for anyone that shorted IWM or went long TWM/TZA). busy chart, i know, but just focus on the blue trendlines (rising wedge and negative divergence below it) with that light blue line at T1, as well as that upper-most downtrend line which we hit today. also note that a IWM short here could prove to be an excellent longer term swing short entry. REMEMBER: WE ARE IN A BEAR MARKET. (or at least i believe so). rallies almost always stop short of expectations and usually before the technicals or any other red flags suggest that they will. that is what bear markets do, they continue to suck in longs and squeeze out shorts on the way down, exactly opposite of what a bull market does. as always, DYODD.
