IYR (REIT Sector ETF) can be shorted here (preferred but aggressive entry) following the divergent high in anticipation of a break below the primary uptrend line or on a solid break below it (more conventional entry). Unadjusted price targets & suggested stops on the daily chart below.
IYR daily Jan 7th
For those that want to add a little “juice” to the trade, here are some near-term & longer-term (rough) targets for SRS (-2x REITs) although best to align entry & exit points with the charts of IYR as the 2x leverage on SRS can lead to decay & distortion in the chart over time.
SRS daily Jan 7th
Essentially, the 2x leverage usually works against a swing trader or investor although during periods of mostly unidirectional trends (i.e.- a rally with mostly up days or a correction with mostly down days) a 2x leveraged ETF such as SRS can actually return more than 200% of its underlying index.
Case in point: During the 12 trading session period from March 4, 2020, to March 23, 2020, IYR fell -41% while SRS gained +129%, well in excess of the 82% (2x) drop of IYR. Both IYR & SRS track the iShares Dow Jones US Real Estate Index.