Why, yes. As a matter of fact, I am.
I bought a full position in $SRS, which is an ultrashort real estate ETF. Rather than chart the ultra (which I basically never do), I will show you a chart of the $IYR, which is the long real estate ETF. As you can see below, the real estate ETF is at a prior resistance level and is printing an ugly red reversal candle today. A retest of the moving averages lined up below could easily happen, and it would not mean the end of the world for this chart. Thus, I am in for a quick trade.
All trades are timestamped in The PPT.
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TOTAL PORTFOLIO:
EQUITIES: 38%
- LONG: 30% ($ROVI $TQNT $CTXS $CMG)
- SHORT: 8% (long $SRS)
CASH: 62%
I am serious, and stop calling me Shirley.
Hi Chess,
You went into this on the chart alone? I don’t understand how this can be predicted from the ETF chart when there are so many fundamentals dictating the real estate game. Sorry to question you (exits the room in reverse prostrating).
N
Fundamentals do matter. However, I believe that the price action of the market is usually a leading indicator compared to them. For a short term trade, I believe the chart above offers a nice risk/reward setup.
Beyond that, it also gives me some downside exposure to my portfolio if the market breaks down here. I do not claim to make any sort of fundamental thesis based on this trade.
Ah. Ok. Short term is the key here then. Thanks for explaining this. I am a novice. This is interesting… Thanks Chess.
I welcome the discussion. I am at the gym now getting my fat ass in shape. I will respond tonight.
Fundamentals are no match for an over the shoulder boulder holder triple bottom quad fibonacci pattern. Come on!
Sorry, what was I thinking, if anything?
I lie corrected.