Sometimes market provides us with opportunity to make easy money. This post is about one of those “make-easy-money” setups. Before market open on Tuesday, July 23, 2019 I posed a bullish calls for RTY:
We should discuss two micro alternatives shown on the chart below. Before we start I want to emphasize that both micro path are bullish. Those two micro paths concern that last expected (a)-(b)-(c) of wave ( v ) of the rally started in December 2018 Path 1. The top made at 1,593.30 on July 1st, 2019 was the top of wave ( a ) up ( purple labels with prefix “alt” ) Under that path a sluggish decline off the last top made on July 1 looks like a completed corrective wave ( b ) down. Then we should see a start of wave ( c ) up from here very soon. Path 2 wave ( a ) of ( v ) has not completed yet. The top made at 1,593.30 on July 1st, 2019 was the top of wave a of v of ( a ) up. Under that path a sluggish decline off the last top made on July 1 looks like a completed corrective wave b of v of ( a ) up. and we are left with another push to a new higher high in subwave c of v of ( a ) ( see the blue labels and blue path ).
Conclusion: in both alternative scenarios we may get a rally with impulsive structure targeting one more higher high.
Later that day at 11-18 AM I reaffirmed my bullish outlook:
RTY 45 min micro count supports really well that very bullish purple count I have posted before open. That decline is structured as a Triple Three corrective structure. It has enough micro waves to count that corrective wave ( b ) down completed.
The next day at 9-56 AM on July 24, 2019 I pointed to a breakout over a down trend line that was a nice signal confirming start of the expected rally:
RTY looks having started an expected rally in wave ( c ) of ( v ) targeting a new higher high.
This morning I reaffirmed two potential bullish paths and corresponding upside targets:
On Tuesday I pointed your attention to a favorable long setup in RTY. On Wednesday I noted that it has broken out over the red down trend line. And it rallied hard the whole day on Thursday. It still keeps alive two bullish alternative path with two different upside targets. In my Premium Private chat I pointed to a potential good trade going long IWM 155 calls expiring Aug 2, 2019 at 3.30 PM on Monday, July 22. Yesterday those calls closed at 3.04 adding 200% in three days since my bullish call.