The risks of trading (holding) anything that might be subject to the whims of POTUS in regards to tariffs or any other regulatory changes that tickle his fancy that day are nearly impossible to manage. Best we can do (other than avoid trading those securities) is to go by the charts

In the CPER & /HG trade idea I posted today, that chart of CPER I posted a few weeks ago had very clear & strong negative divergences with overbought conditions. The technicals (and my arrows) played out as were indicated on the charts.

While there may certainly be more downside to come in copper prices, a 27% plunge in less than a week is one for the record books so that, coupled with the fact copper has fallen to support (and my 2nd downside price target) tells me the odds for a reflexive, oversold bounce here are favorable. As with any trade, it either works out or not & this one is certainly not for the faint of heart (i.e.- risk-adverse traders).

Possibly, although if you have a good pulse on WELL, you’d probably be better off trading it directly instead of using DRN & DRV. If trading those leveraged ETFs, you want to make sure the charts of IYR and/or XLRE confirm the long & short entries.

As I said in the video, there are various types of REITs in the sector with different technicals (charts) as well as different fundamentals (e.g.- the defensive healthcare sector vs. other sectors that are more cyclical & subject to the ups & downs of the business cycle).

@rsotc

Also, it looks like WELL does a much better job of tracking DRN. Do you think looking for divergences on WELL and then trading DRN/DRV (short term only) would be a decent strategy?
https://i.imgur.com/26jDJKn.jpeg

Meta and MSFT CVNA are up huge after earnings. Futures up big too.

Be careful in the next couple of days. The TACO trade may end and the heavy Chinese tariffs will return. That would crush the market. My company is getting $50k a month in tariff bills. This wasn’t in our budget, coming straight out of our profit. Of course we will pass it along to our customer and they will pass it on to the consumer. Tariffs are a direct tax on the American people. What ever is subsidized you get more of and whatever is taxed you get less of.

The president blew up copper by expanding tariffs to 50%. @rsotc how are we supposed to trade when the rules can be changed by fiat at any moment. Also why are copper prices falling instead of rising. It’s essential to all electronics and many other applications. There won’t be too much demand destruction because of it.
https://i.imgur.com/vYJM4rI.jpeg