The IWM Triggers an HVC Setup? What?

Today at a glance:

• Review of IWM

• What this means going forwards

• Key focus names for tomorrow into end of week

Let’s dive in:

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A Look At The IWM

So… big day today out of small caps. Highest Volume In 1 Year (HV1), price % change over 5.5% which a look back over last two years hasn’t happened once, and a closing range of 99%.

Here are some other impressive price % gains from IWM over the past 3 years, but in your studies note none are like today.

Tues, March 24th, 2020: 9.15%

Thurs, March 26th, 2020: 6.22%

Mon, April 6, 2020: 7.66%

Mon, April 18th, 2020: 6.08%

Wed, Jan 06, 2021: 4.1%

What This Means Going Forwards

It would make sense after seeing this action for small caps to follow through in the coming days/weeks. If you’ve studied any type of high volume gap up, you’ll note this type of price action + volume usually signals the start of a new trend, not the end.

And, knowing how beaten down these names have been, more aggressive capital inflows fueling higher upside moves checks out as well.

Here are some names I’m going to be tracking with less than 2B in market cap: