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Paul Mosgovoy
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Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Re-Positioned Short On Russell 2000 Small Cap 0 comments
    Nov 6, 2013 9:09 PM | about stocks: IWM, TZA

    It might seem like a lot of activity with getting short the iShares Russell 2000 ETF (NYSEARCA:IWM), but there have only been two entries and one exit thus far.

    Both of those entries (including today) were in-the-green at the close.

    Being in a position of profit at the close gives credibility to the entry and also gives some amount of protection if further analysis shows that the trade is not going to cooperate.

    In our view, the IWM has reached a long-term measured move target as described in this report. In addition, it now appears to have met short-term criteria for initiating a move lower of some significance.

    The daily chart below shows the price action as of today's close:

    (click to enlarge)

    IWM Daily Chart

    Charts by

    We are not actually shorting the Russell 2000 small-cap index but rather going long the Direxion fund that performs as the inverse of that index: Direxion Russell 2000 3X Bear ETF (NYSEARCA:TZA).

    We are long TZA with a stop at 20.09


    This report is for discussion purposes and contains our opinions only. This posting is to publicly document our thinking and market analysis actions within the Three Ten Trading entity. The data was obtained from sources believed to be reliable. However, we make no guarantee as to the accuracy of that data.

    Investing or trading in equities, futures or options may result in a significant loss of capital, total loss of capital or a loss greater than available capital.

    We are not advocating any stock or in any way offering portfolio management advice or stock selection service.


    Paul Mosgovoy, President: Three Ten Trading, LLC

    Thank you for reading.

    Disclosure: I am long TZA.

    Stocks: IWM, TZA
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