TWM (2x Short Russell 2000 Small Cap Index ETF) will trigger a long entry on any print above 13.64 (i.e. 13.65 or higher). Such a move should take IWM below Monday’s reaction low of 169.35 as well as the 169.70ish support level and my secondary, BOD (benefit of the doubt) yellow uptrend line. Such a breakdown below trendline + price support would also come on the heels of another divergent high similar to the divergent high finalized back on January 24th, with IWM falling 11% over the next 11 trading sessions following that DH.
TWM daily Sept 19th
The price targets for TWM are T1 at 14.21, T2 at 14.77 & T3 at 15.64. The maximum suggested stop, if targeting T3, is any move below 12.95. Due to the 200% leverage on TWM, which was selected to allow for the possibility of shorting in non-margin accounts, the suggested beta-adjusted position size for this swing trade is 0.50.
IWM daily Sept 19th
Note: Since I began composing this post, IWM started moving sharply lower, causing TWM to trigger an entry. As such, this is now an Active Short trade that still offers an objective short entry.
Remember, you BUY or go long TWM to gain short exposure on the Russell 2000 Index. As such, although technically a long position, this trade is categorized as a Short Swing Trade.