RUT / RTY / M2k Falls out of channel, stuck between VWAPS

The channel the RUT/RTY has been in for almost a week has failed to the downside.

It has falling down before for momentary spikes but now appears to be getting fairly solid resistance from the channel bottom. It should be an interesting night after a day of volume only-on-sell for the most part.

That said, keep your stops close cause we all know how it gets pumped for the morning dump.

My target is down to the longer term (about 1 month) lower trend line in the 1415 area, knowing that 1400 is a tough nut to crack and unlikely to hold outside cash hours

Comment:

Hitched a ride for a few on the back of ES and messed with the 200 SMA but coming back down, last candle resist off the channel bottom again. I thought that might be an issue since SMAs tend to be like magnets for price action in indecision.

Would not assume it won't do that a couple times till it falls away more.

General structure of the channel still intact

Trade active:

Short 2@ 1438.5; target 1400

Stops moved to channel; risk free at this point. If we get a solid beachhead under 1415/1420 I will likely move stops again. I usually would have waited long for confirmation, but mes getting rejected at 3125 showed me the sentiment isn't there right now for a large pump and I shorted when the developing bullish engulf got reversed @1439

Trade active:

Set to double short position at 1431 with fairly tight (12pip) stops on the tier. May get stopped out on a quick bounce, but the rewards for catching it at the break are nice. This has the potential for being an overnight position

Comment:

Picked up some stress and 5 more shorts at that wip back @1434.9

I'm now 10x short with close stops on 5x.

Avg price 1437.5, stops at 1436/1438

Risk on up to 12 pips avg

Comment:

Moved all my stops to 1338 to not get stopped by a spike, back down to 1336.

I (luckily) didn't get filled at 1337.1

Took profit on 5x at 1334, just a bit of risk off, maybe got 4 pips after commission each on tier 2

Trade closed manually:

Closed out all but 2 shorts for profit (~120 pips each) keeping my 2 from the top (1440). Stops 1438 -- might let these run overnight to see if they have legs -- essentially risk-free now

Trade active:

got stopped out for no gain/profit

Short again from 1440 (2@m2k)

Trade active:

Too much action for details, but i'm generally just leapfrogging this down

Trade closed: target reached:

What a wonderful time to be alive!

I got in 5x just after pre-open @ 1423.5 Took profit at 1370. Basically just free money getting paid to move stops.

With these long distance drops, they key, IMHO, if to not be aggressive with your stops until you fully clear out a support level and are working on the next.

If the charts turn on you though you can always close early and set up to catch it where you left off