IYR Testing Critical Levels
- Posted by Frank Zorrilla
- on November 27th, 2012
The IYR (Dow Jones U.S. Real Estate Index etf) is testing critical levels, if one is aggressive and believes in shorting a decent risk reward opportunity has presented itself. As you can see from the daily chart below the IYR is testing the $63.50-$64 level which has acted as support since the end of June until it finally broke that level on 11/8/2012. On the weekly chart it is testing a more significant level which is the underside of the ascending trendline that started in March 2009. The opportunity lies in a short trade against a closing move above the declining 50 day moving average ($64.25) and the 1st target will be a retest of the recent low $60.84. $DRV is 3x IYR inverse ETF. Currently 95% of the stocks within the IYR are trading above their 10 day moving average, and its up 5 out of the last 6 days.
If this idea makes sense to you, then play at your own risk, and know your risk. Consult your broker/advisor/etc or us at Zor Capital.
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