It’s been an up and down week for me. I have a great trade going in $LLNW and a couple flat and slightly negative trades in $GV and $SYMN. But that’s the way it goes. Close out your losers for small losses, let the winners run and pocket the difference.
Anyway, let’s look at what’s happening in the IWM, which is the ETF that follows the Russell 2000 Small Cap Index. As I trade volatile stocks below $5, you can bet that’s the one I keep an eye on.
A down week for the market once the 50 hour moving average cracked and after printing that sweet looking bear flag on the 4th and 5th the market played out the rest of the measured move perfectly.
Right when you think you’re out they pull you back in. Like, seriously? I don’t know if the IWM is EVER going to make it out of this insane channel that it’s in. And yes, “Like, seriously?” is my professional opinion.
Anyway, obviously resistance will now have to become support if this market wants to continue going up.
Still plenty of distance between price and the 50 week MA. You can see that crazy year long sideways action very clearly here. Anyway, lots of setups showing up in low priced stocks so I’m not really worried. Still, if the market wants to plummet it will take all of those set ups with it.
But that’s why they call it trading and not, here’s a bunch of free cash whenever you need it.
- Hourly: Down
- Daily: Sideways
- Weekly: Up
Good luck out there everyone!