Well, Russell 2000 (IWM) really is going “straight up” as it has, finally, broken out of this dreaded 8-month consolidation with today’s statement-making thrust, printing new all-time high.
Can it really keep going like this?
It’s possible as most of the buyers were neglecting the small-caps or got burned and was not paying attention until recently.
Today’s move was pretty much a ‘panic buying’ as FOMO (fear of missing out) people are stepping in.
It’s always a sucker’s game if you are chasing a move–I assure you, only people who are truly profiting from this move are the ones who has been buying the dips and been patiently waiting for months.
Most traders either got stopped out with a loss in August, or tried to short in mid-August and got burned, or attempted to get in before the breakout and got chopped to death pretty much all year long.
Indeed, it was probably the toughest trade I’ve done so far this year but because of that I believe it’s going to be the most profitable trade this year–you reap what you sow.
I am still targeting 155 before unloading any of my positions, and should the price fall in the next few days I would want to see 144-145 hold for the minor-term sentiment to stay bullish.
*This post was originally posted on my blog. Traders Club.
