Opening Indications

So far, this is just as I suspected when I switched the SRTY core position (3x short IWM) to a URTY trading position (3x long IWM) yesterday, Trade Management: SRTY/URTY

Thus far the IWM is doubling the performance of the SPY, this is something I expected, either the SPY would barely participate or show much weaker relative performance, although I assumed a rising tide would lift all boats and therefore the common sense thing to do would be to also switch my SQQQ (3x short QQQ) and FAZ (3x short financials) which are also being massively outperformed by the IWM this morning, I didn't have reliable signals to base the trade on, I don't go with gut feeling, I go with what I can objectively observe.

I'm not sure that the SPY / QQQ will even close green as I mentioned yesterday, but in switching SRTY I was not only able to hedge my portfolio completely, but still have it at an overall gain today even with SQQQ and FAZ simply by switching SRTY to URTY, where I did have objective (even though uncomfortable) evidence.

Here are the charts so far...

 IWM 10 min,  don't think for a second that the inverse H&S "like" price pattern is accidental.

Intraday the 2 min IWM chart is PERFECTLY in line.

The 1 min steering divegrence which is no indication of distribution at this point is a little negative as in an intraday jiggle.

The SPY 2 min however has ZERO confirmation, in fact distribution on the move which makes me wonder if it can hold gains through the day or however long the IWM move can last.

Intraday it's just as bad.

The Q's look a little better on the 2 min , but still not confirming, the IWM is outperforming them as well.

Intraday it looks a bit worse, this may be a bit heavier than steering, we'll see later if there's migration to the 2, 3, 5 min charts.

The TICK opened strong on an initial short squeeze at over +1250, but has since fallen in a narrow range.

And as the 1 min charts are suggesting, TICK is losing intraday breadth , but I don't see this as anything unusual for intraday trade.

The Most Shorted Index vs the SPX was obviously used, but as I said yesterday, beyond repair...

MSI on a larger scale.

As expected, HYG was also used. It will be interesting to monitor flight to safety trades such as treasuries, Utilities and even VIX/VIX futures, I wouldn't be surprised to see better relative performance, especially as we move forward.

For now, it looks like yesterday's call/switch to URTY/Long IWM was right on target, I certainly don't want to miss the much bigger move though.