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Paul Mosgovoy
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Market updates are no longer posted to this site. All updates and communication are posted on LinkedIn: Please request a link to be added to my network. Thank you, Paul Mosgovoy
My company:
Three Ten Trading, LLC
My book:
Market Masters: Livermore, Wyckoff and Loeb
  • Russell 2000 Small Cap In Downward Channel 0 comments
    Nov 9, 2013 10:07 AM | about stocks: IWM

    The iShares Russell 2000 ETF (NYSEARCA:IWM) has now established a downward trading channel as shown in the chart below:

    (click to enlarge)IWM Daily Chart

    Charts by

    As seen on the chart, there is the potential to expand this channel to the lower line.

    If price action declines next week and penetrates the bottom of the minor channel (the dashed red line), then a short-term trade may be a planned exit if the IWM approaches the lower blue channel line.

    From a timing standpoint, the above scenario may play out with the IWM touching the lower channel line and then initiate a rally going forward into mid December just prior to the next Fed meeting.

    As mentioned previously, we are not short the IWM but rather long the Direxion Russell 2000 Bearish 3X ETF (NYSEARCA:TZA) and have a stop at 20.39.


    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.

    Themes: TZA Stocks: IWM
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