11/2/21 The Homestretch

The little guys are breaking out to the upside from a ten month base. The bottoming pattern is pretty, especially from July. Note how the 52 week is rising at a steeper angle than the 13 week. IWM and associates are usually heart breakers on breakouts, but both the 13 and 52 week levels look like good buy points on pullbacks. Buying now doesn’t look too bad, but keep in mind that there aren’t any good places for stops (there never are).

If the Fed can’t tighten in this kind of environment, it is hard to imagine when it can.

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