My Life My Trade

Of late, IYR seems to have gone parabolic. We all know how such parabolic moves end. Once the reversal happens, the down move that happens is faster than the parabolic move up. IYR broke out at $35 mark and should head there in a hurry.

I am no longer trying to play this by going long SRS. With the big moves up in bullish leveraged ETFs, I am going to play this and other downside moves by shorting the leveraged bullish ETFs, which in this case is URE.

A move down to $35 region should take SRS to $15 – $15.50, and URE down to $4 region. It is not uncommon for IYR to make moves of 8 to 10% to the downside in a single day. As always, any love shared is appreciated.

IYR has gone crazy. All good things come to an end… so definitely the bad ones do as well. I expect IYR to be below $35 in next week or so. This should bring URE down to $4 or so.

Holding this over the weekend.

Contingent limit hit – SPY yesterday afternoon’s high-of-the-day.

2% gain for overnight hold.

Position size not disclosed

Stop contingent on IYR breaking Wednesday’s low of the day, $31.70