IWM At An Interesting Juncture

by Geoff Garbacz | 07/14/2021 3:30 PM
IWM At An Interesting Juncture

Recently, I updated the ytd returns on a variety of indexes from equities, bonds, currencies, commodities and sectors. What struck me as odd was the leading equity index was ….

The Russell 2000 or IWM which is the ETF that tracks the returns of the Russell 2000. It was up 17% for the year yet there has been no advance since mid February? Which is fantastic from a trading perspective. Why?

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The sideways action tells me that IWM is either going to breakout above or below its current level. This makes it a great trade to be long or short. If you want us to do the work on this trade idea, then go to www.optionsindextrader.com and sign up for a free trial as I will be putting on a trade soon in IWM and closed out a SPY put trade for a 60.09% gainer.

Recent inflation data this week showed CPI up 0.5% and PPI up 1.0% today. Small Caps tend to react more negatively to inflation as they lack the capital to pay more dollars to build goods. However, it the inflation is transitory then Small Caps could break out of the sideways action. Watch for a new trade on IWM sooner than later.

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