keep an eye on that initial support area that i marked on the IYR 60 min because if prices can break below it, i believe that would really increase the odds that this trade plays out to at least the first target. this remains one of my favorite trades right now but we must break below that level, and then the next uptrend line marked on this chart before we can say this one is safely out of the gates. consider stops not too far above the recent highs in IYR (lows in SRS), which would give the SRS trade about a 15% gain potential and about a 2-3% downside risk or a 6 to 1 R/R ratio, which isn’t bad. anyone not wanting to risk jumping the gun on this counter-trend trade could wait for the broad markets to break their 60 min uptrend lines although a lot of meat will probably be skimmed off the bone on the SRS trade by that time. of course, always trade according to you own style and risk-tolerance.
