IWM: The Rotation Rocket? Waiting at the Shoulder
The market is flirting with new highs—and you know how this game goes. If the S&P breaks out clean, expect the "rotation to small caps" narrative to come flying in right on cue. Rinse and repeat. We've seen this before.
📈 Chartwise, IWM is either:
Breaking out from a complex inverse head and shoulders, or...
We’re seeing the formation of a final right shoulder just above $198–$200.
That red zone is key. A retest of the shoulder trendline near $200 could offer a sweet spot for re-entry.
My Position:
Started with 10 June 30 $220 calls back in the April flush
Sold 8 contracts to lock in profit and now holding 2 runners free and clear
Watching price action near the neckline/shoulder zone—may reload if we dip with volume drying up.
Macro Context:
The tape has been dull.
VIX is dropping.
Summer float season is coming.
The Fed and Wall Street crew might just levitate this market while the banksters summer in Europe on their yachts.
Trade Setup Logic:
Breakout = rocket fuel. IWM has lagged hard—it may finally play catch-up.
Pullback to $200 = re-entry zone.
Over $220 = squeeze territory. Targeting a move to $233 (top of the range from late 2023).
The market is flirting with new highs—and you know how this game goes. If the S&P breaks out clean, expect the "rotation to small caps" narrative to come flying in right on cue. Rinse and repeat. We've seen this before.
📈 Chartwise, IWM is either:
Breaking out from a complex inverse head and shoulders, or...
We’re seeing the formation of a final right shoulder just above $198–$200.
That red zone is key. A retest of the shoulder trendline near $200 could offer a sweet spot for re-entry.
My Position:
Started with 10 June 30 $220 calls back in the April flush
Sold 8 contracts to lock in profit and now holding 2 runners free and clear
Watching price action near the neckline/shoulder zone—may reload if we dip with volume drying up.
Macro Context:
The tape has been dull.
VIX is dropping.
Summer float season is coming.
The Fed and Wall Street crew might just levitate this market while the banksters summer in Europe on their yachts.
Trade Setup Logic:
Breakout = rocket fuel. IWM has lagged hard—it may finally play catch-up.
Pullback to $200 = re-entry zone.
Over $220 = squeeze territory. Targeting a move to $233 (top of the range from late 2023).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.