I can't add to the SRTY trading position (3x leveraged short IWM/Russell 2000), another trading position just in the green and one I'd love to add to, probably right here, but this is already at 2/3rds full size and above the normal trading position size.
Since we have talked so much about "Channel Busters " recently with PCLN and this is a concept we have been tracking and using for years, I thought you might find this interesting.
I think this also has market implications as well.
The IWM was in a downtrend making lower highs and lower lows, but
for our purposes, more importantly it was in a channel and this now marks a "Channel Buster". These may seem very bullish or bearish (depending on which way they break ) at the time, however this is a price pattern considered to be a head fake that has one of the best records of QUICKLY reversing and swinging down to the bottom of the channel and OFTEN RIGHT THROUGH THE BOTTOM.
I ONLY NEED 1 MORE CHART...
The 5 min chart of the IWM tracking the trend, however it is showing a significant leading negative divergence at the "Channel Buster", which is just more probabilities stacked up on this reliable pattern.
I think, considering it's the Russell 2000/IWM, you can't ignore the implications for the broader market.
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