Early today, I threw in the towel on my IWM puts for one simple reason: I was concerned that, like the retail fund (XRT), it was going to break out of its long-standing sinewave pattern and fly higher.
XRT and IWM definitely looked similar, and when I used layered charts to look at them over a period of decades, the tracking is undeniable.
Looking even closer, it is virtually tick-for-tick. I didn’t’ want to stick around to see if IWM was going to pull an XRT on me, so………….I’m out.
I’ve got to say, the current market environment seems totally bereft of opportunities in EITHER direction, except for insane YOLO plays in the world of crypto and meme stocks. It’s seriously like late 2021 all over again.
