Today's session started off with a short-covering rally in the iShares U.S. Real Estate ETF (IYR).
This rally was completely eclipsed by the mid session and then the IYR proceeded to sell off heavily and broke to new daily lows.
As stated in this report, our target for IYR remains unchanged.
If the IYR reaches the target level identified, it may or may not be an indication for an exit. As always, it depends on the actual price action to determine if the measured move projection means the end of the trade or if there is more downside available.
Since we had a short-covering rally today, probability suggests that we are not likely to have a similar rally without further down-side first.
Moving the stop as indicated in the chart below is acceptable at this point.
Charts by StockCharts.com
We are long the DirexionShares U.S. Daily Real Estate Bear 3X Shares ETF (DRV) with a stop at: 60.67
Disclaimer:
This report is for discussion purposes and contains our opinions only. This posting is to publicly document our thinking and market analysis actions within the Three Ten Trading entity. The data was obtained from sources believed to be reliable. However, we make no guarantee as to the accuracy of that data.
Investing or trading in equities, futures or options may result in a significant loss of capital, total loss of capital or a loss greater than available capital.
We are not advocating any stock or in any way offering portfolio management advice or stock selection service.
Respectfully,
Paul Mosgovoy, President: Three Ten Trading, LLC
Thank you for reading.
Disclosure: I am long DRV.