TACTICAL UPDATE on $IWM call... STICK WITH IWM BUY PLZ. Target still $235-$240

STRATEGY: IWM 0.34%  tactical call to $235-$240 still intact, just give it a few more days
…since issuing the IWM tactical call, IWM 0.34%  has risen 10 points in 10 days, but there is still upside
10 trading days, on 5/13/2021, we issued a INTRADAY FIRST WORD to our clients, as we saw an important inflection taking place in small-caps, using IWM 0.34%  ETF as a proxy.
– our view was the Epicenter stocks, via IWM 0.34% , was bottoming
– the tactical call was based upon a DeMark count (v1b, 30 min) of a ’13’ buy set up


As shown below, IWM 0.34%  managed to gain ~6%, rising 10 points over the last 10 days
– this is less than the 10% we expected
– but for reasons discussed in this note, we think the 10% upside is still there, but it needs a few more days

BOTTOM LINE, we stick with our tactical buy IWM 0.34%  call, and still see $235-$240, but it might take another 5 days, maybe 10

TACTICAL UPDATE on $IWM call... STICK WITH IWM BUY PLZ.  Target still $235-$240



…Symmetric recovery underway
Zoom out a bit, and you can see this symmetry of this recovery. 
IWM 0.34%  peaked at $231 in late April
– double-bottom at $213, hence, our INTRADAY FIRST WORD
– symmetry on recovery = $231, or ~10 more points


– upside is really an “overshoot” to $235-$240

TACTICAL UPDATE on $IWM call... STICK WITH IWM BUY PLZ.  Target still $235-$240




…DeMark daily count still positive, using IWM/SPY
Moreover, see how the daily DeMark count remains positive for IWM 0.34% .
– below is IWM 0.34% /SPY 0.42% , and is only based upon closing prices
– the count is early at ‘1’ and we expect the sell setup to get to ‘9’ or ’13’

So the tactical outlook remains solidly positive

TACTICAL UPDATE on $IWM call... STICK WITH IWM BUY PLZ.  Target still $235-$240




BOTTOM LINE: We remain positive on equities, and see signs of capitulation.  Our top 3 sectors remain:

IWM 0.34%  set for a tactical 10 day rally, back to $235-$240 possibly
IWM 0.34%  needs a few more days, like 5-10 days

– Top 3 sectors still Energy, Materials and Financials –> XLE -0.48%  XLB 0.96%  XLF 0.62%
– We are cautious on Technology and recommend using strength to reduce –> XLK 0.29%  QQQ 0.30%  

More from the author

Disclosures (show)

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You are reading the last free article for this month.

By continuing, you agree to the Terms of Service and Privacy Policy.

Already have an account? Sign In

Trending tickers in our research

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You are reading the last free article for this month.

By continuing, you agree to the Terms of Service and Privacy Policy.

Already have an account? Sign In