Trade Alert

This is a gut wrenching trade considering how strong the selloff has been, but if you have mastered the skill of getting out of a position when wrong, this is an opportunity.

The IWM has been out of the lower Bollinger Band for so many days now, a relief rally seems highly likely.  The IWM has also pierced the 200DMA for the first time since 2011, which should bring some snap back buyers into the market.  I will participate with a position in TNA and close it if it drops below my entry price.

I will exit to the upside on stages at IWM price levels indicated by the solid black lines punctured by the green line.

Do not overstay your welcome, and admit that you may have been wrong and take a small loss before it becomes a gargantuan loss.

Good luck to us all!

 

UPDATE at  3:55 PM Friday Jan 8th.

No sign of a bounce, but getting in to a TNA position at the close.  Risk reward proposition seems to be too good to deny.

MONDAY will tell the tale.  Enjoy the weekend!

IWM oversold

Update Tuesday Jan 12th.

Needless to say, the market is very weak and the trade idea failed.

I will be waiting for another shot at a counter trend rally.

 

Update Wednesday Jan 13th:

Back in the TNA counter-trend trade at the open, stop at the low of today’s trade.

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