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IWM/TNA Trade Setup & Entry

IWM offers an objective short entry here on the break below this 60-minute chart pattern. The two official price targets at this time are T1 at 118.61 & T2 at 117.08 although this trade may be extended with additional price targets added, depending on how the chart play out in the coming days.

IWM 60-minute Aug 2nd

IWM 60-minute Aug 2nd

If my read on the charts is correct, the move down to either of these targets should be relative swift & if so, one could use TZA (3x short small cap ETF) in lieu of an IWM (1x long small cap) or TNA (3x long small cap ETF), the latter of which is my preferred proxy for this potential multi-week swing short on the Russell 2000 index.

IWM current price is 120.49 with TNA around 73.77. A TNA short or TZA long should be closed if/when IWM reached your preferred target. Suggest stop on any move above IWM 121.65.

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Aug 2, 2016 10:15am|Categories: Completed Trades - Short|Tags: , |2 Comments

2 Comments

  1. pkm48193 August 2, 2016 10:48 am at 10:48 am

    Fast markets, bought TZA to add to my TNA short. Needed targets. I much appreiate the guidance. Thanks.

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    • rsotc August 2, 2016 11:22 am at 11:22 am

      You’re most welcome. FWIW, those targets, although high-probability targets IMO, certainly have the possibility to be early targets for what could morph into a much longer-term or even possible a relatively swift but much larger swing trade (translation: large but very fast drop).
      As such, at this time, one strategry might be to lower stops to entry once the first target is hit & continue to let the position ride (as long as the charts confirm) while periodically lowering or trailing down stops to allow for much larger profit potential. Just one idea but there’s nothing wrong with booking partial or full profits at the early targets for that that feel more comfortable doing so (assuming the trade pans out). G-luck.

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