This has been a nice run since I posted on the 8th. I really am surprised this run is going as long as it is. I do expect this to go into a whip saw motion now. All of the majors are forming a topping pattern. SPY Doji, DIA first down day since the 6th, QQQ is a doji and IWM is hitting resistance. So let’s see how it goes from here.
Looks like we have a bounce. Yesterday it found support and today we are moving up. My last post on IWM said support would be much lower. I am not sure where I came up with this number. It is too far away from the price. I may have made a typo. Regardless we are moving back up. It is a good time to get in for the swing trades. I am staying away due to the testing we are doing with a day strategy.
IWM has made the move to the downside. It is below it’s 30SMA and has support at 73.92. We will have to see if it bounces up off of this support. We have gone from paper trading to live with what I call the Camarilla and Persons Pivot system. We are only trading a small portion of the portfolio until we have it down. We discovered on Friday that we need to multiply the position size calculated from the stocks price by the delta. This keeps the risk reward in right relationship.