Playing the Ponzi's  Instablog

Playing the Ponzi
Send Message
Why “Playing the Ponzi”? I view the entire monetary and financial system as something of a Ponzi scheme. Starting with currency that is created as debt, and running straight through a global economic model that is based on infinite growth in a finite world. This won’t end well. I’d go a step... More
My blog:
Playing the Ponzi
  • ITB An Interesting Short Candidate? 0 comments
    Nov 21, 2012 1:40 PM | about stocks: ITB, IYR

    Much has been made recently of the housing recovery that appears to be taking hold in the U.S. While the news is newly prominent in the mainstream media, the market has been pricing in a housing recovery since the start of the year. It may be that the good news is already baked into the securities. Chart ace Chris Kimble has noted IYR (Real Estate ETF) as an interesting short candidate. IYR has indeed underperformed of late - much moreso than ITB. ITB is currently testing resistance that could serve as the right should of a 3 month Head-and-Shoulders pattern. It had previously broken down from a 6 month rising wedge, but found support at a year-old rising trend line. It may be worth noting that MoneyFlow has been declining for the last 6 months (red line sub-graph) as the stock continued to rise.

    (click to enlarge)

    With so much bullishness on housing, this seems like a fairly contrarian play. My exposure is limited to some $21 Dec Put contracts at this point.

    Disclosure: I am short IYR.

    Additional disclosure: I own $21 Dec Puts on ITB, and $65 Dec Puts in IYR

    Stocks: ITB, IYR
Back To Playing the Ponzi's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.