Big Bet on Small Caps

Featuring Dave Floyd

Dave Floyd, founder and president of Aspen Trading Group, is bullish on the Russell 2000. He discusses the catalysts, key levels to watch, and how to make the trade. Filmed on May 22nd, 2018.

Published on
24 May, 2018
Topic
Trading, Technical Analysis
Duration
7 minutes
Asset class
Equities
Rating
14

Comments

  • DF

    Dave F.

    9 6 2018 23:59

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    IWM still looking good - we maintain a long and are also using IWM Call Spreads to express this forecast.

  • AF

    Andrew F.

    28 5 2018 14:35

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    Thx again Dave.

    • DF

      Dave F.

      30 5 2018 03:10

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      My pleasure Andrew

  • CC

    Chris C.

    27 5 2018 07:15

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    Good stuff Dave! I'm in on this and giving it a little more time to run...

    • DF

      Dave F.

      30 5 2018 03:11

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      Hi Chris.....IWM held in really well today despite the weakness in the S&P's....a good sign IMO....I remain long and also have a call spread on to play higher levels.

  • DF

    Dave F.

    26 5 2018 18:28

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    That is correct Connor......

  • JM

    Johann M.

    24 5 2018 11:20

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    Set up looks great, Target & Stop Loss just wrong way round. Must just focus on remaining bullish even though the economic conditions in general isn't looking that great. Maybe use a trailing stop if momentum higher is picking up?

    • DF

      Dave F.

      24 5 2018 13:05

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      Johann,

      Thanks for the question. While there are some valid arguments on the fundamental side, these markets continue to ignore warning signs.....case in point, the flying pig....TSLA.

      Trailing stops? For sure. We always employ trailing stops here at Aspen when managing positions.

      Take care,

      Dave

  • AV

    Alberto V.

    24 5 2018 09:51

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    I would have liked a better, longer explanation of wave theory and its application to the Russell 2000.

    Corrigenda:
    [@2m32s left] "Typically wave 5 will move .618% the length of waves 1 through 3". He meant 61.8%, not 'point'618%.
    [@0m15s left] In the final slide the Stop Loss and Target price levels are switched.

    • DF

      Dave F.

      24 5 2018 13:02

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      GM Alberto...thanks for the comments. I have an email into the folks at RV about the stop/target being out of order.

      In terms of a longer explanation of how the targets were derived, I can understand that desire. However, these videos are not set-up to go into a deep dive, rather an overview of the rationale with the trade parameters. There is certainly an opportunity here at RV for a video series on education....let the folks over there know.

      .618 or 61.8? It really does not make a difference....a decimal converts to 61.8 when expressed as a percentage.

      Take care,

      Dave

    • AV

      Alberto V.

      24 5 2018 17:32

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      Dave, regarding the %, I'm well aware: he said "point six one eight percent". He did say 'PERCENT'. You either go one way, or the other; can't have both at once.
      It know it's just a lapsus and I'm sure he's well aware of this too. Regards.

    • cl

      connor l.

      25 5 2018 13:10

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      The Dave F. that you're conversing with is the same as the one in the video.

    • DF

      Dave F.

      9 6 2018 23:58

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      Alberto - regarding your request for more in depth explanation of wave theory or any other analysis approach, I understand the desire for that. However, the Technical Trader videos are not set-up for that type of content - just the rationale for the trade with a healthy dose of rationale.

      There will be forthcoming educational videos to deal with the nuts and bolts of analysis and basic trading principles. Stay tuned.

      Dave