This is an important support for IYR (Real Estate) ! It's bouncing off that level as I'm typing this... however,any break and close below $45.3 would be quite bearish for IYR and URE (Ultra IYR) and bullish for SRS (Double Short IYR) ! BTW, I don't expect IYR to go above $48 in 2010 !
IYR is trading at $43.93 right now ! The chart of IYR (Real Estate) can be devastating for SRS (Double short IYR) if it manages to break and close above the blue (R) line ! In this case it would be wise to step away from SRS and buy URE(Double long IYR) ! On the other hand , a failure to break above (R) would be quite encouraging for buying SRS !!
IYR(Real Estyate ETF)has formed a bullish pennant ! URE(Ultra long Real Estate) for those who believe the breakout will be for real, or SRS(Real Estate Ultra short) for those who think it will be a fakeout ! If this breakout is for real, then the next measured target will be roughly $45.
BTW : I remember having hate mails when I was calling for "a" bottom in housing for 2009. Granted I did not expect IYR to go that high !
The opinions expressed on this site are made available for educational and entertainment purposes only. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance.