I am adding TWM (2x short Russell 2000 Index etf) as a long here at 23.90 as I am expecting a backfill of the recent large gap in the $RUT/IWM. Due to the expected short duration and good R/R on this trade, I prefer to use the 2x leveraged etf vs. shorting IWM. More aggressive traders could opt for TZA (3x short $RUT) but generally I try to avoid the 3x leveraged etfs unless shorting them due to the price decay. Resistance on the TWM is 25.20 although I will set my sell limit order around 25.10 to avoid missing a fill if the trade works out but reverse just shy of the gap. Stop below 23.60 offers a 4:1 R/R on the trade (0.30 downside vs. $1.20 gain potential). IWM daily and TWM 15 min chart below.
note: Since this is a short trade, it will be added to the Active Trades- Short category. However, you would go long, not short TWM since it is an inverse etf.
