SRS (2x Leveraged Short Real Estate ETF) will be added as an Active Short Trade* around current levels. (*one would buy or go long SRS for a short trade on the REIT sector). I’ve opted to use SRS as the proxy for shorting the REITs due to their relatively low volatility as well as the fact that an inverse ETF allows for shorting in non-margin/cash accounts, such as IRAs.
SRS daily Aug 22nd
IYR is the 1x ETF that I use as a proxy for charting the REIT sector. IYR recently printed a divergent high with an evening star doji topping pattern with the REITs failing at the previous reaction high (resistance) from December 2017.
IYR daily Aug 22nd
The price targets for this trade are T1 at 28.59 & T2 at 30.32 with a potential third target around the 32 level. The maximum suggested stop is any move below 25.74 and a suggested beta-adjusted position size of 0.70.
I noticed this one late in the session & as it takes a while to annotate the chart, my apologies for sending this out so close to the closing bell.