IWM-SRTY

I like the idea of a short position on the IWM which is also similar to having some exposure to small caps in the way shorting the QQQ would give you some exposure to Tech or the Dow to large caps. From Tuesday there's a IWM Put position that is still in place, but after any initial drop, I'd prefer to have a leveraged ETF like SRTY (3x short IWM).

The difficulty with the IWM right now is it is in such a clearly defined range that it's very likely there's a ton or stop and limit orders on either idea of the range so a Crazy Ivan shakeout seems like a probably occurrence, I would guess a shakeout move to the upside followed by a real move to the downside.

Here are the charts and I checked them against URTY (3x long IWM) and SRTY (3x short IWM) and the confirmation looks pretty good there, I imagine on a head fake move it would look even better.

 This is probably the most defined range of all the major averages, Technical traders will almost certainly put their short stops just above the top of the range and there could also be limit buy orders there as this does look like a bullish rectangle consolidation/continuation pattern (they have no directional bias except the preceding trend which was up-that's why it is bullish). If you want to give a stock an extra push to the downside, you do that by first popping it above a VERY obvious range, trap bulls in long positions and then send the stock down below the range. The bulls are at  loss, they start selling which adds more supply to the market and these failed moves (failed breakout or head fake) often fall very fast and very sharp.

 I like the looks of all 3 o the charts on the different ETFs, the IWM 10 min here has a sharp leading negative divergence-remmeber I never have thought this was going to be a primary trend move down, I think sharp, but followed by a likely stronger move to the upside after it is over.

 IWM 5 min leading negative, with 1 smaller head fake in yellow.

IWM 3 min with a head fake and a negative leading divergence even on the gap up open today.

Because I think the range is so tempting for a stop run, I would prefer to hold off on starting or adding to an IWM short, whether Puts or SRTY or just short the IWM. However if we do see that move to the upside above the range, I would be very sharp and ready to make the move to open a position as I do think a failure of the position could come very quickly.