EB Special Report - Tuesday, May 23, 2023
This Special Report is in lieu of our Daily Market Report. I'm trying to update ChartLists and preparing for tomorrow's LIVE Trading Room session. It'll begin at 8:45am ET and you'll be sent a separate email with room instructions. This is a major commitment on our part as it literally provides a full day of education as I discuss many of the EB features, tools, and research necessary to improve trading results. Accordingly, we limit room participation to our Annual members. The GREAT news, however, is that we're running our BEST deal of the year - our Spring Special - that can save you loads of money over the course of 1, 2, or 3 years. CLICK HERE to pick the best Spring Special option for you and join us tomorrow morning - if you're not already an annual member!
I really just want to pass one thing along with this Special Report. I've been discussing the very bullish undertones in the small cap arena for the past few weeks. Today, we're getting the HUGE breakout I've been looking for. Instead of just trading in and out of the TNA (3x bullish leveraged ETF that tracks small caps), I took on a full position as the IWM cleared price highs within the lengthy trading range. Check this out:
EB members can ignore this development, consider buying the IWM (safest option to play the breakout), or consider buying a bit of the TNA (the highest risk - leveraged 3x position). It's completely up to you. Technically, I believe this breakout could be much more meaningful than the prior breakouts. Why? Because we've been watching that massive rotation from small cap value ($DJUSVS) to small cap growth ($DJUSGS). I believe Wall Street has been positioning into small cap growth in anticipation of a major move higher. Just my opinion.
If the IWM were to reverse today and close back beneath 178 or so, it might simply mean more consolidation and frustration ahead. If, however, we confirm this breakout on today's close, there are two key support levels to watch on the IWM going forward. The first will be price support around the 178 area. The second would be the rising 20-day EMA, currently at 175.52. I believe that combination will hold as small caps fly higher. Again, just my opinion.
There may or may not be a DMR published tomorrow. Because of the Live Trading Room, I will not have time to publish one. John Hopkins will provide a very brief update, time permitting.
Happy trading!
Tom