Go Small for Bigger Gains

The stock market is having another big risk-off trading day… 

This follows the prior day’s enthusiasm stemming from the series of excellent economic data and news, particularly for consumer spending and retail sales.

But even today, there are trades setting up for stocks that are bargains now with underpinnings of future positive business successes.

Specifically, we’re looking at US-focused smaller companies and their stocks. 

These are benefitting from the continued US economic gains and are more insulated from global strife.

The trade that we are looking at today is for the Russell 2000 Index (RTY) and its futures contract.

We are seeing a potential trading opportunity in the works, so read on…

Setting Up for a Small-Cap Gain

Here’s the daily RTY chart and the set up discussion…

Hourly Russell 2000 Index (RTY) Price & Technical Analysis – Source: TradingView

The Russell 2000 Index (RTY) one hour time frame is in the buy zone making higher highs and higher lows. 

The market has an up Fibonacci with an extension price point 1,867.60, about +748 ticks above the market.

Entry: Counter trend line break bullish in the buy zone

Stop: 1,693.00

Limit: 1,867.60

As long as the market stays in the buy zone, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader long / Destination Trader long ideas.

The Bottom Line

While the stock market continues to gyrate, there are always stock trading opportunities for gains if you take the time to do the deep dive research to find what can and will work.

And smaller, US-centric companies may be one of them as presented above via our work on the RTY index.

In addition, digital currencies entered at the right levels may also provide potential further gain opportunities. 

Luckily, you can now leverage the market knowledge I’ve gained over all my years in the market to your advantage. 

If you’re interested in learning more, consider checking out my entry level futures trading service, Futures War Room.

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 including BTC and ETH.
To learn how to do this effectively using the strategies developed inside my War Room, click here!

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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