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.
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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 »
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