IWM Small Caps at Support

IWM (small cap ETF) is at a decent support level while quite oversold in the near-term. As such, the odds for a bounce off this initial tag of support from above are elevated at this time. Although IWM is only an unofficial trade idea, I just covered my entire short position as to reduce my overall net short exposure for the time being (and might re-enter on a bounce, should I see an objective re-entry opp). Previous & updated daily charts (note how IWM had one major bounce since the breakdown, right where forecasted):

2016-06-27T11:37:07+00:00 Jun 27, 2016 11:33am|Categories: Equity Market Analysis|Tags: , |6 Comments


  1. Eric K June 27, 2016 11:49 am at 11:49 am

    Nice ROI on that trade. Unofficial but it worked out. Still holding some RWM for the long haul but definitely want back in if an objective entry emerges.


  2. Eric K June 27, 2016 11:53 am at 11:53 am

    That was a good trade Randy (short TNA). ~20% ROI. Not bad for an unofficial trade. I’ve got some RWM tucked away for the long haul but would like to add to it and short TNA again if you find an objective re-entry point.


    • rsotc June 27, 2016 1:23 pm at 1:23 pm

      Congrats Eric & me too (would like to re-short TNA if I see an objective re-entry point).. .will let you know if so. FWIW- L/T swing target on IWM is around 87, about another 20% drop in IWM. “L/T (long-term) could just be a month or two from now is this Brexit induced sell-off doesn’t get bought up very soon as by nearly all accounts, it appears to be the catalyst that the market needed to trigger the next primary leg down. G-luck on the RWM position.


  3. joefriday June 27, 2016 12:43 pm at 12:43 pm

    Yep… sold my IWM and QQQ puts will look to re-load after the next dead cat bounce…


    • rsotc June 27, 2016 1:44 pm at 1:44 pm

      JF– You’re probably right with a dead-cat bounce being the most likely scenario before the next leg down. In fact, I think that bounce might have just run its course with the market ready to hit new intraday lows soon.


  4. dan123 June 27, 2016 3:33 pm at 3:33 pm

    Thanks Randy, hopefully it will form a head and shoulder pattern


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