IWM: The Rotation Rocket? Waiting at the Shoulder

IWM: The Rotation Rocket? Waiting at the Shoulder

The market is flirting with new highs—and you know how this game goes. If the S&P breaks out clean, expect the "rotation to small caps" narrative to come flying in right on cue. Rinse and repeat. We've seen this before.

📈 Chartwise, IWM is either:

Breaking out from a complex inverse head and shoulders, or...

We’re seeing the formation of a final right shoulder just above $198–$200.

That red zone is key. A retest of the shoulder trendline near $200 could offer a sweet spot for re-entry.

My Position:

Started with 10 June 30 $220 calls back in the April flush

Sold 8 contracts to lock in profit and now holding 2 runners free and clear

Watching price action near the neckline/shoulder zone—may reload if we dip with volume drying up.

Macro Context:

The tape has been dull.

VIX is dropping.

Summer float season is coming.

The Fed and Wall Street crew might just levitate this market while the banksters summer in Europe on their yachts.

Trade Setup Logic:

Breakout = rocket fuel. IWM has lagged hard—it may finally play catch-up.

Pullback to $200 = re-entry zone.

Over $220 = squeeze territory. Targeting a move to $233 (top of the range from late 2023).