$IWM Big Base Break Out Explained- Video and Transcript
Turbo Trading's Head Trader Robert Knight. MBA explains the $IWM big base breakout that happened on November 1, 2021. This break out confirms Robert Knight's belief that the Santa Claus Rally has started as we see mid-cap and small-cap stocks start to participate in this strong rally. A transcript is below the video.
This is a video one. I want to talk about the big base breakout. And I say this quite often, I write it: The bigger, the base, the greater the space. And what I mean by that is this huge base-building building consolidation. It's actually, you don't know if it's a base or a distribution or a base until it breaks out or, or drops.
So this is a big consolidation pattern, but what you find is the longer this period takes the longer period of time that this consolidation pattern works. So we call it the bigger, the base, the greater the space. When you get the breakout, you should look for, you know, big, big moves. And we can see that with this is the $IWM, which is the Russell 2000 ETF.
And I've been talking about this for, you know, for a long time now, six, seven months waiting for this thing to break out. And now it's coming back up to this, you know, triple top, quadruple top here at the $230.50 broke out through $230. Where we'll see what the significance of this trade is, we see this in Netflix.
I talked about this quite a bit as well. Look at Netflix here had this same thing, big nine-month basing pattern: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12. Actually, this pattern is well over a year, a 14-month pattern. So this is a huge, huge consolidation. Basing pattern was in a tight range between really between $470 and this level $590. Tried several times to get through.
And then it did get up through it pulled back, held key support area. This was a couple of breakouts here, but really the key support was in this area right around the $575 area. Maybe even here at $565, popped up through it, pull back, held the support, and then got into this big rising channel.
And you can see the strength of this thing. This has moved a hundred dollars. Well, since it broke out of this, this big basing pattern and it looks like it wants to continue to go $710, $730, $750. Those would all be targets for Netflix here. This is a big base breakout, and then you can see the strength of when it does break out the momentum that this type of stock can get.
So for us, we're very interested in this $IWM and this, this big various 1, 2 3 4 5 6, 7, 8. This is nine months that the stock has consolidated in this range, really big ranges here between $212. I talked about and up here at the $230 and then the $234.50. This breaks out through $234.50 with some emphasis.
I mean, it may pop out through pullback hold to support and boom. We're going to see a very, very big market here, for the stocks we trade now going through until, probably, you know, mid-February, end of February. This is going to be the start. Well, this will participate in the Santa Claus rally that I called back on October 18th, where I said, this is going to be the big start of the big move.
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