I am not comfortable buying momentum and so it follows that I am not comfortable shorting it either. It is safer to watch for breakdowns and then bounce backs to resistance. So this look at the Real Estate iShares is a look-ahead to a potential setup, for anyone interested.
We have been tracking IYR’s bearish state in NFTRH, as it buckles under the pressure of rising long-term interest rates, which we have also been tracking as a macro theme (Amigo #2).
Let’s keep it very simple. A bounce back to the SMA 200 and the broken channel line (78.75 to 79.50) with the rising interest rate backdrop intact could be a good spot to try a short. It would be nice if by that time the SMA 50 will have continued to decline toward that area as well.
I am not recommending shorting, because it is a risky and often frustrating proposition. But NFTRH+ wants to note setups and this one has potential. More details if the trade becomes active in the coming days or weeks.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason), which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.