First trade in over a month. RTY has been on a tear for the past month as small caps have outperformed the large cap indices by a significant margin. There was 3 levels of resistance at around 1936. Shorted 30 MRTY @ 1936.7. The bulk of my scales were at 1933.6 when the 30 second stochastic went oversold, at 1932 which was the VWAP and at 1930.6 which was the 21 ema on the 1 minute. This all occurred within 5 minutes of entry. Last scale was at 1924.70, 30 minutes after entry. Made $673. Overall I’m happy with the entry and with the majority of the scale outs. When shorting highs especially in this bullish environment, you have to scale out when targets are hit because there is a high probability that the highs will be retested. Also, breadth was quite positive when I entered the trade so I wasn’t expecting a huge reversal off the highs although price did accelerate to the downside later in the morning. I think I will trade more mini contracts going forward. Although commissions are greater, holding more contracts gives one more flexibility in scaling out which allows for greater profits if price does follow through.
