Given the volatility in the market, looking for long or short ideas can be difficult at this point. But, I think the next opportunity may lie in real estate.
Given the carnage everywhere, the $IYR, the real estate index, has held up pretty well all things considered. But, if we take a look now, the index is threatening to make a fresh leg lower. If things start unravel here, look for shit to hit the fan QUICK in commercial real estate, just as they did in 2008. Here is a chart of the $IYR:
I took a starter position in $DRV today, the 3x bear real estate fund, and will look to add more on further weakness in the overall market. I love the potential here, but also understand the risk should the market turn higher.
At the close today, I am long $ERY, $DRV, and a boatload of cash. I guess you can say I am siding with the bears here.
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I’ve been looking at LVS as a short idea. They earn a very SIGNIFICANT amount of their income from Macau, and Singapore. Two places I believe, are going to shit themselves(or the RE market at least). I’m thinking $36 would be a “holy fuck we going down” number. However, I wouldn’t mind taking a short position now.
I’m with you on $LVS
$GNK at decision point…$9.25 OR $6.50 the next move??
needs to hold the 20 day
SLW H+S on close below 30.