I Want Money (IWM)

For those unfamiliar with [[IWM]] , get familiar.

IWM seeks investment results that correspond generally to the price and yield performance of the Russell 2000. The Index measures the performance of the small-capitalization sector.

The beauty of this ETF is that you can trade it using options (very liquid options), and they also trade 15 minutes after the close.

Keeping things simple around here, I will focus my trading on IWM for the next few days. As you can see from the chart below we are a critical point in the index– it’s “bounce or die.”

(click to enlarge)

I think a great way to play this is to open a strangle position, then wait to see if support is held or broken, and close out the respective leg. Also, if we do head below $65, buy more puts.

No one has a clue where we are headed, so use the option strategy to ease your mind– and help you profit.

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“I Want Money (IWM)”

[youtube:http://www.youtube.com/watch?v=-tyk4PoTFzk 450 300]

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..for the real fun to begin.

I’ve done little today, scalped a few trades here and there, but nothing to write about. Tomorrow we get to see if they let us short financials again– that will be interesting.

My position is cash, if I make a trade, you can believe it will be closed out before the days over. I’ve lost too much money holding positions overnight. September 2008 was, by far, my worst month physically, mentally, & financially– I’m glad it’s over.

– Chart Toppers

– Bull & Bear Radar

– Nervous Markets

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No way the Dow gets past 10,800 (resistance) without some kind of Gov’t intervention:

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[[UYG]] correspond to twice (200%) the daily performance of the Dow Jones U.S. Financials Index. Click here for daily holdings.

Top 10 holdings:

With so much uncertainty surrounding the financials, one of my favorite trades at the moment is a strangle in UYG.

Go here for a review of the Strangle

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Finviz.com keeps getting better, the ETF map is one of my favorite features.

In other news, I regret not buying on the dip yesterday for a trade. My focus was not there after the Wachovia Corporation [[WB]] disaster.

I bet Cubsrock is having a great day today, he seemed to be the only one buying. My only buy yesterday was National-Oilwell Varco, Inc. [[NOV]] , so far, so good.

Note: I have no interest to buy today.

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Nancy Pelosi’s Speech and The Historic Reaction on Wall Street:

[youtube:http://www.youtube.com/watch?v=bvRh_aytll8 450 300]

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