IWM and another upcoming chat w/ JC …

tomorrow, have the opportunity to sit down w/ JC and continue our discussion around Fibonacci and vibrations and patterns …I’ll post the talk after its completion and believe it’s also live streamed on Twitter. We’re doing it after the market closes …

in the last episode he specifically asked that we spend time on the “rock hitting the water” or the “initial ripple” … below, you’ll see the chart that gave us an “idea” of a POTENTIAL stopping point and it’s the “regular” technical analysis. this is the chart that I blogged.

but, in order to REALLY get an appreciation to why this LEVEL is so important and how, perhaps, one can start making that little move towards the cliff to jump into the rabbit hole w/ me I show some more of what’s really going on … not meant to confuse anyone but to visually show what I mean when I say I’ll usually look at 11-12 things before making an investment … I didn’t blog the last two charts because I think it’s just too much information. honestly, that’s the only reason.

Is IWM going to breakout or breakdown? YES. NO. Have no idea but whichever way it DOES GO it’s going to be a wave to catch and surf … fer sher. also, it never hit my Signal Reversal Candle. (SRC) who the heck knows when it’s going to blow …

initial post showing target zones for IWM
target being hit …
the green highlights are qual to the dashed red lines (note – start the “square” at 32 and other numbers …)
the ROCK hitting the water and the waves that result … the ROCK is the initial impulse move off the low on 10/10/2002 … using physics the fundamental frequency is then calculated.
simple calculation from the all time low and “creating” the IWM Musical Scale based on the Equal Octave Scale of Music (multiply each cell by 1.05946) NOTE: the high zone in IWM was equal to the finishing of the 4th octave.

IWM is that REALLY it …?

last post on IWM: https://bartscharts.com/2021/02/21/iwm-is-that-it/

I also blogged about KEY SUPPORT in/around 224-225. that was the FIRST PATTERN BUY in this long term uptrend. is that uptrend still alive?

if you go back to the last post mentioned above, you can see a very clear 5 wave move that, and this is important, BREAKS NO RULES of the Elliott Wave Theory. It’s a valid count …

now, is the count correct? we don’t know ….but we can find out rather soon as we have an almost perfect SELL PATTERN in/around the 225-227 level.

now for the IF and THEN

IF the top around 235 is a valid end to a 5th wave THEN this SELL PATTERN shown below SHOULD work.

a valid target will be 198-200 or below ….

have a GREAT EASTER to everyone if this is what you celebrate .. what an amazing time of the year and a time to be alive.

salute – Bart

IWM – KEY SUPPORT

last post about IWM: https://bartscharts.com/2021/02/21/iwm-is-that-it/

that’s the great thing about patterns … they work or they don’t.

WHEN they do, they tell you something.

conversely, when they DO NOT work, they tell you something.

I’ve been showing a 5 wave count in IWM for a while and, just recently, it went up and tagged our target zone. it’s one of many target zones …

the question is “is this the one?”

I don’t know … but we have an intraday BUY PATTERN and if this is a bullish corrective move then this level SHOULD hold … yes, a correction can go into the 210’s but in this case we have the classic AB=CD, 1.4142 extension and the .382 retracement all right here, right now.

IF bullish, THEN this level holds and goes higher …. we’ll see

IWM – is that it?

adding to this last post about IWM: https://bartscharts.com/2019/03/02/iwm/

I’m teaching my son about “advanced” Pattern Recognition … it’s fun and the big thing we keep hammering into each other is trade what you SEE not what you think/believe. (thanks Larry P)

well, here is IWM.

what do I see:

  1. a VALID wave count that breaks no rules. I feel comfortable in saying that we are in a 5th wave …
  2. AB=CD or Wave 3 = Wave 5 at 234.
  3. 1.732 extension (daily)
  4. fundamental frequency from the first impulse low of October 2002 – July 2007
  5. Square of 9 targets
  6. geometrical projection technique

Folks, a LOT of thrust into this level, so .. playing it safe here and WAITING for a signal reversal candle weekly close below 206.

A LOT OF MATH HAS BEEN HIT ON IWM …

it’s only probability and only a pattern … if it holds, ramifications are BIG.

IWM – update

IWM – another leg down to complete corrective sequence?

12/1 – quick update to show that the “expect resistance” level has been hit so do just that .. expect some resistance. the form and proportion certainly don’t appear to mean this is the end of a move … I could be wrong, but the thrust and strength certainly suggest higher but not after, perhaps a pause/pullback here in this expected resistance area.

11/22 – nice run from the target area depicted below down in/around 100. You see, we were able to use PATTERNS and some math to figure out a likely “stopping point” or “resistance” for IWM around 173 … we then used a GUIDELINE to pick a nice area where it “could” go. in this case, it did … that solidified a pretty good or solid count of 1,2,3,4 as NO rules were broken and the guideline for the 4th wave worked (this time) so, safe to say, we have a probability that we are in a 5th wave for IWM. as stated on the chart, there isn’t really any form, balance or proportion to make a “good” (in my case that would be very AVERAGE) count …. so, using some “guidelines” I was able to find 181 by using wave relationships and proportionality … in this case 181 represents .618 wave 3 and 1.618 wave 1 projected from the wave 4 low of 95. “expect” some resistance in/around here. but, I just don’t think that it’s it for more upside … stay tuned.


the last time I blogged by IWM was here: https://bartscharts.com/2018/05/17/iwm-caveat-emptor-and-check-out-where-price-hovered-today-in-my-p-s-below-cool/

we correctly ID a target zone of resistance and am now looking for another wave down sequence that will, if this count is correct, lead to a great BUY opportunity. I’ve outlined my count in the chart below …

IWM … caveat emptor and check out where price hovered today in my P.S below … cool.

I’ve seen the very strong strength shown by IWM (ETF for Russell 2000) but I also see 5 waves and monthly bearish divergence. I’m not ‘sold’ on the bullish aspect of this ETF, yet.  Let’s see how it deals w/ the 2 daily butterfly patterns (bearish) that are present right in the zone of the measured move shown on the monthly …

What I can say is that IF these patterns fail this puppy will, indeed, explode.  But that monthly tells me … not so fast and be careful of the ‘no brainer’ trade being long IWM.

Bart

PS – for those of you who are geeks, like me, notice the close hovered around 161.80’s or the golden mean – 1.618. Note – our subconscious mind doesn’t worry about decimals points.

PS – 1.618 or 161.80  🙂

IWM — checkmate (but crank up Dark Side of the Moon and a glass of wine before reading)

 

IWM …

so, in October of 2013 (yes, more than a year ago) I was beating the drum of a very important top forthcoming top/target zone in the IWM.  (An ETF of the Russel 2000.) See below the double line area …

The zone depicted from that post in October  2013 is below and , yes, the IWM respected the zone and corrected roughly 12-15%.  A “decent” correction so to speak.

so, as of today, as the DOW and S&P recorded new intraday highs, the Russell (and, OBTW,  the big daddy $NYA) are stuck at the.786 retracement.

Folks, clear and simple … we are at checkmate w/ regard to the stocks.  I’m biased that “the band plays on” and we climb the deflationary ladder of chaos for, perhaps, another year OR we stop in/around here (next week perhaps) and start down w/ a really good and scary shakedown.

but before we try to “guess” what is going to happen next … go put some Pink Floyd on Google Play, pour a glass of wine and just walk w/ me down the musical component of the stock market … don’t try to figure out the WHY or the WHAT and,well, completely throw this away as bullshit if you want.

I don’t care … but the bottom line is the ENTIRE THING HAS BEEN FUCKING PERFECT in regards to the world of music. Bada Bing Bong Boom ….

SQUARE ROOTS RUN EVERYTHING:

.786 … just a number

but one of the most important retracement numbers out there.  and, contrary to what people say , IT IS NOT A FIBONACCI NUMBER!  

it does derive from 1.618 (which is the golden mean) but here’s the deal … it’s a musical derivation of the Fibonacci based golden mean…why you might ask?

tumblr_m1gnom6gGc1r2h5u7o1_500

1.618 …

square root = 1.27

1/1.27 = .786.

the frequency of a string is INVERSELY PROPORTIONAL to the SQUARE ROOT OF its weight (length)

additionally, the frequency is DIRECTLY PROPORTIONAL to the SQUARE ROOT of its tension ….

SQUARE ROOTS AND THEIR INVERSES FOLKS !!!!!

so as we look at the TOP in IWM … 121 (hello a NATURAL SQUARE 11*11 = 121) we can see WHY the puppy stopped in/around 104. TILT — HUGH?

121 square root = 11.

11-.786 = 10.214

10.214^2 = 104.32 (PLEASE LOOK AT THE CHART BELOW AND NOTICE THE CLOSES AND OPENS DENOTED BY THE LIGHT BLUE LINE) – THAT LINE IS DRAWN AT 104.

OK Bart … that’s kind of cool.  But, for one moment don’t even tell me that it was a 104 calendar day correction from the high at 121….!

  • all time high 07/01/2014
  • add 104 calendar days: 10/13/2014 – please see the chart.
    • folks, that was the EXACT close and the OFF THE IWM went …

Main20141106184353

so, what the heck does all this mean … as my wife likes to tell me — give me the CLIFF NOTES.

1. this ZONE depicted is a MAJOR pattern from the all time low.

2.  the .786 retracement from the 121 high has held the market from going higher

  • if we lose this thing to the upside THEN it could cook off in a sling shot parabolic move ..

3. the MATH shown is simply to show that, well, it was PERFECT in PRICE and TIME and therefore the subsequent move up was 1) expected and 2) makes sense.

4.  IF LONG – in the context of this amazing run in the Russell 2000 – I would just simply hold it and roll w/ it .. HOWEVER if we break that 104 level then cut it and bail.

5. If SHORT – then watch for a WEEKLY (tomorrow) close above the .786 and if you get a graceful exit on Sunday Night/Monday morning get ready to cut it and get long for a good year or so as this puppy launches.

Last thing … I HAVE NO IDEA WHICH SCENARIO WILL PLAY OUT ….

email me if you have any questions …

I just want to make sure you, my bad ass readers, have a clue as what I’m trying to convey.

At a minimum, you can tell your significant other to leave you alone, put some Pink Floyd on and enjoy a glass of wine w/ some square root stuff ….

B

 

 

 


 


 

measured moves are powerful tools and on long term charts they are very useful for forecasting price moves.  take a look at the chart below … the BLUE arrows are the lengths of the bull moves in the IWM.  appears the current move will converge nicely in/around 113-114.  Then, since we are all working w/ probabilities, what do you think the probability is that we find stiff/major/topping (?) resistance in around that area…? if that doesn’t stop it then watch 120-121 … either way we have the POTENTIAL for, at a minimum a 6th month correction?

last thing is some very easy time study … note the TIME it took for the first blue arrow to go up…now look at the TIME of this move that began at 34.

we have a convergence of PRICE and TIME in and around here … just saying.

IWM price and time coming together here/now or soon!
IWM price and time coming together here/now or soon!