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How We’re Setting Up to Capitalize on the Selloff

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The US stock market is having plenty of challenges. Leading indexes have moved into bearish market conditions, with perhaps more to follow. 

And even if we get the recovery in some of the leading indexes, not all are set for a recovery right now before a potential further selloff.

Small stocks as tracked by the Russell 2000 Index and traded via the futures contract (RTY) are one of the trade ideas that may shape up for a quick potential profit on the sell side.

So, let’s take a look at potentially capitalizing on a selloff in the Russell 2000 futures contract (RTY) for a gain this week…

 The  Russell 2000 Index (RTY) Trade Setup

Here’s how the chart is showing the potential gain from selling the small stock-focused Russell 2000 Index futures contract (RTY) in a bear trade setup…

Russell 2000 Index Futures Contract (RTY) Price and Technical Analysis – Source: TradingView

And here’s how I see the potential bear trade setting up…

The Russell 2000 stock index futures contract (RTY) daily time frame is in a down channel.

The market is moving from the top of the channel towards the bottom of the channel price point at 1,635.00, about +977 ticks below the market. 

This represents a profit opportunity for a bear or sell trade in the RTY contract.

It will be a good idea to turn to the one hour time frame and to look for high prices in the sell zone.

The Bottom Line

For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.

And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!

Keep on trading,

P.S. I have been teaching more and more traders how to make their own trading accounts work so well that they can effectively become a side job with plenty of regular earning opportunities, particularly in digital currencies like BTC and ETH.
To learn how this might work for you, I have a special on-demand presentation showing how this works utilizing my War Room service that you can access here for free.

The post How We’re Setting Up to Capitalize on the Selloff appeared first on Josh Daily Direction.

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