Fibs @ work on the IWM

Here is a great example of using fibs for enrty and exit strategy. As you can see on this 3 month chart the fall from 80 to 64 found downward resistance on each fib line. So if we draw a line from that low to the near term high we get new retracement levels for the bounce. It is pretty clear IWM may struggle along the bottom side of the bottom fan to tough resistance @ $71 & $72 in order to get back to test the $72.80 level. I'll be sticking in a toe by scaling in with Puts at these levels and loading up after the retest of 72.80 for the next leg down. Stops to be set at $72.90.

For the brave with HUGE cojones buying Calls below $70.50. for the ride to $72.80 you could set a stop @ $70.10.