Bottom Reversal

[Pascal]

Today, we experienced a bottom reversal. This probably indicates that investors are bullish for the next three days, which correspond to the FOMC announcement combined to the now traditional end of the Month reverse repo.

We can see below that IWM has followed the Cumulative Tick today. The reverse repo almost guarantees that the CTick will be positive in the next days.

The best price to buy IWM is just below 113, which is the 200MA. (This corresponds to TNA at around 70.10 to 70.20)

The idea is to short the bounce on July 31 or Aug 1.

We can see on a 20D scale that the 20DMF is not collapsing. It is still very close to its Buy/Sell porosity level. This makes it very hard to trade with conviction.



Pascal