SRTY / URTY / IWM Follow up

Yesterday's decision to move from a longer term position in SRTY to URTY for a shorter term anticipated bounce was one that was difficult and didn't sit well with me, but it did hedge the portfolio and added some gains as I suspected the S&P, Dow and NDX would all see relative weakness vs the IWM.

There's still a significant divegrence in the IWM on the same 10 min chart so I may or may not decide to do this again, but what I do know is that if I don't have an exceptionally good reason to be in URTY, then I better be in SRTY and the reasons for today at least were starting to run dry.

 IWM intraday 3C chart was not only going negative, but leading negative, that's good enough reason for me to exit yesterday's URTY long, Trade Management: SRTY/URTY and back in to SRTY, Moving Out of URTY and Back to SRTY

This isn't typically the kind of trading I prefer, but I think with the big picture and the 10 min IWM divergence which is serious as well, but not anywhere near the big picture, both have to be taken seriously or at least the opportunities there. As I said yesterday, I wouldn't fault anyone for just staying in SRTY and keeping their eye on the prize if you have the risk tolerance for that.

 There's migration from the 1 min chart to the 2 min so the distribution is there and moving along to larger underlying signals,  this is exactly what we saw last week in SPY/QQQ which is very different from past bounces that wouldn't see distribution start for at least a couple of days as they made their way higher.

 The IWM 3 min never confirmed today's move up.

As mentioned, the IWM 10 min positive divegrence I have been talking about for more than a week is still there, I would not expect to see any changes in it this early, but I will be watching it.

As for SRTY, look at this intraday divergence , leading positive.

I found this interesting considering the next chart...

 The IWM is nearly perfectly in line on this 3 min chart except a small positive divegrence to the left and a negative divegrence yesterday where I exited it in favor of URTY for a very short term trade. Today there's a positive divegrence in SRTY on the same chart.

 This was the chart that sealed the deal for me yesterday to move to URTY for a short time as I suspected the IWM was finally going to move as SRTY's 10 min was and is leading negative, this is why I "may" re-enter URTY at some point, but this is really not the area to over-trade against the probabilities so  I'll need very good reason.

The probabilities are still firmly anchored on the long term charts like the60 min SRTY leading positive divegrence which is significant is you make a relative comparison between 3C here and back in March at a similar relative price area.