SRTY is at a decent gain (3x short IWM/Russell 2000) ) and I've been toying with the idea of closing SRTY briefly for a long URTY position to trade an IWM bounce, however looking at the charts and reminding myself why SRTY was entered (not as a trading position, but as a macro position), I have to keep pulling myself back from that idea even though it seems like a pretty cut and dry trade, so did AAPL. Instead I have decided to use IWM calls instead.
The SRTY charts are incredibly strong...
Surprisingly there's no negative divegrence on the 3 min chart, I would have expected something here.
This is the 5 min chart and base area, even though the IWM does have a 5 min divegrence..
SRTY is in line surprisingly again. This is why I like to ise multiple assets as they will often give you additional information about the same underlying. It seems demand in SRTY has been high.
There's a small relative negative on the 10 min chart.
However the 15 min chart is not only holding up, but in the strongest divergence of the year, leading positive.
As is the hourly chart.
This is the IWM 60 min which is what the SRTY position is really for, longer term macro trend.
And the IWM daily chart.
With the way the market acted this week, very weak on the bounce, a very weak bounce and discounting events that it hasn't since 2009, I wouldn't want to have been patient this long to miss that one morning in which the market gaps down and takes months of gains out on a single gap as most of us have seen at some point.
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