Small Caps Sucker Punch Setup

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There are two things saving my butt today: my PAA short and my precious metals positions. I’m long DUST and JDST, as well as short GLD.

In spite of the record-highs-everywhere in equities, I’d like to quietly point out that on the small caps, we did in fact break a crucially important trendline, and we are rallying beautifully to its underside.

0808-IWM

Here’s a closer look.

0808-IWMCLOSE

I have thus shorted IWM in size with a stop at 142.39.

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