IYR At a Possible Bounce Level
- Posted by Frank Zorrilla
- on November 13th, 2012
The IYR tracks the Dow Jones U.S. Real Estate Index, the ETF is comprise of 64 real estate related stocks; Simon Property Group, Public Storage, Essex Property Group, just to name a few. What led me to look at the IYR is that it’s been down for 5 days in a row and from a numbers perspective the ETF is oversold at current levels. Currently only 11% of the stocks within the ETF are above their 10 day moving average, and only 14% are above their 50 day moving average. The fact that ETF’S are mean reverting vehicles this type of set up has a high probability of a 1-3 day dead cat bounce, if it opens lower tomorrow the probability increases. But what I also noticed is that on the weekly chart the IYR is back to a level that used to be resistance that can very well act as support the first time around especially after 5 consecutive down closes, to boot that resistance level also coincides with its rising 50 week moving average (the $62.50-$62.70 level).
There are different ways to play this set up, make sure to consult your financial advisor/ guru/ broker or you can contact us at ZorCapital
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
blog comments powered by Disqus
Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
Nothing beats verified actual performance
Sign up for ZorTrades FREE updates.
Additional Articles and Updates
- Allow Me To Introduce You To
- The V Bottom PlayBook
- ThetaResearch Welcomes Two New Active Investment Managers
- 8 Soft Facts You Should Know About Shorting
- What You Need To Know To Make Money In 2015
- Legendary Investor Explains Why Investors Are Their Own Worst Enemy.
- Why Financial Advisors Don’t Show Their Returns
- The Current State Of The Market
- 15 Tips To Improve Your Trading
- What You Can and Cannot Control In Trading