Big Bet on Small Caps

Published on
May 24th, 2018
Trading, Technical Analysis
7 minutes
Asset class

Big Bet on Small Caps

Technical Trader ·
Featuring Dave Floyd

Published on: May 24th, 2018 • Duration: 7 minutes • Asset Class: Equities • Topic: Trading, Technical Analysis

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.


  • DF
    Dave F. | Contributor
    9 June 2018 @ 23:59
    IWM still looking good - we maintain a long and are also using IWM Call Spreads to express this forecast.
  • AF
    Andrew F.
    28 May 2018 @ 14:35
    Thx again Dave.
    • DF
      Dave F. | Contributor
      30 May 2018 @ 03:10
      My pleasure Andrew
  • CC
    Chris C.
    27 May 2018 @ 07:15
    Good stuff Dave! I'm in on this and giving it a little more time to run...
    • DF
      Dave F. | Contributor
      30 May 2018 @ 03:11
      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. | Contributor
    26 May 2018 @ 18:28
    That is correct Connor......
  • JM
    Johann M.
    24 May 2018 @ 11:20
    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. | Contributor
      24 May 2018 @ 13:05
      Johann, Thanks for the question. While there are some valid arguments on the fundamental side, these markets continue to ignore warning 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 May 2018 @ 09:51
    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. | Contributor
      24 May 2018 @ 13:02
      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 May 2018 @ 17:32
      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 May 2018 @ 13:10
      The Dave F. that you're conversing with is the same as the one in the video.
    • DF
      Dave F. | Contributor
      9 June 2018 @ 23:58
      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