EB Daily Market Report - Special Report - Monday, August 14, 2023

This Special Report will be in lieu of a full Daily Market Report today, but the timing to get this report out RIGHT NOW is very important. I didn't want to wait.

We know that there's been a very consistent pattern over the past year or more of morning weakness leading to afternoon strength. I discussed this QQQ manipulation for a year. Then the QQQ exploded higher after Wall Street was able to fill its coffers by buying into that morning weakness for a lengthy period.

More recently, I've discussed the rotation into the IWM from the QQQ and that's been one reason why I've been transitioning from my IWM trade into a TNA trade. (TNA is a 3x leveraged ETF that tracks the IWM). Well, today I've added a bit more TNA and lessened my IWM position. I now have roughly 60% IWM and 40% TNA, which increases my risk considerably, but I want to do exactly that when the IWM hits major support and that's what it's done this morning:

Check out the AD line. I believe we're being manipulated once again by market makers and I suspect we're going to rally off this level. If the IWM closes beneath 188, I'll move everything back into the IWM and wait for another opportunity to leverage.

I'll be much more bullish at today's close if we print a hammer or some other type of reversing candle (piercing candle, bullish engulfing candle, etc.), especially if it occur on increasing volume.

This strategy may not be appropriate for everyone. PLEASE understand the additional risks of investing in leveraged ETFs like the TNA. Always keep in mind that I'm not a Registered Investment Advisor (RIA) and neither is EarningsBeats.com. We're not licensed to provide advice, so please don't misconstrue any of this as advice. I have no idea what each member's risk tolerance is, so I simply ask that you understand the risks of any trade you make. I am providing my opinion that IWM is at a very significant support level where I expect a bounce. Again, if it closes beneath 188, I'll adjust my risk accordingly.

Happy trading!

Tom Bowley