IWM: Monthly outlook (September)Thought I would share my analysis on IWM. Not a lot of ideas get posted on IWM and its kind of an under-rated stock.
I scaled in short today before close (with TZA). Expecting this to be a bit early with CPI. I have a feeling the market wants to rally with CPI. The reason being is that the first projected monthly high for IWM is 194 (green line on the chart). There is roughly a 50% chance we see this high this month.
The monthly low is 176.56 and the odds we hit that are incredibly high.
INCREDIBLY.
HIGH.
So I am ideally swinging to this level. I am kind of hoping this is able to rally up to 194. This would be a clear area to go fairly heavy short. Whether it gets there, not sure. The market overall is quite overbought with this counter-trend rally. It really, I think, hinges on the CPI results.
For the end of the month, IWM is looking to close below 187. So this makes me rest assured in my TZA position... for now.
Anyway, that's it. Very brief and to the point post.
Let me know your thoughts!
Trade safe everyone!
