Diamond Hands | Short Russell

I’ve said for over a decade that the Russell 2000 Index (Futures Symbol: RTY) is the pot-limit Omaha of trading. It’s so fun to play, yet frustrating the entire time.   It’s easy for a position to go from first to worst, often in a matter of minutes.  The dreaded river changes everything.

Fortunately, trading is not the same as the binary outcome of a single hand of Omaha, so when you’ve got a strong hand, and proper bankroll management, you can wait for the math to work in your favor. Over the past few weeks, we’re seeing the RTY lead the stock indices, approaching the all-time highs from early in the year.  Part of the narrative in this leg higher is around the Wall Street Bet stocks, including GME and AMC, requiring hedging in the Russell.

When is this game or movie over? I’ve got no edge there.  All I can do is believe in the math, mean reversion, proper entries, and my DIAMOND SHORT HANDS!  ?

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