How We’re Setting Up to Capitalize on the Selloff

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.

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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.
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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

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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