This was the vehicle I shorted on a second go-round against Real Estate (IYR was used the first time) as Amigo #2, the long-term yields Amigo, was rising toward its limits. Everyone then got on Amigo #2’s back and got all beared up on the bond market (cue: Gross & Dalio) and the time is ripe for that play to cool down.
Hence, I am covering the oversold Real Estate sector, per the NFTRH Trade Log* and not being greedy. In fact, with the renewed plunge I am starting to get bullish feelings about the broad US stock market.
* I am growing more and more comfortable with this feature because it allows me to show people how stupid and smart I can be at any given time. In other words, it allows subscribers to keep tabs on how I am backing my market stance and frees me from having to over explain what is truly my least favorite subject matter (with all the interesting macro and technical stuff in play) in the weekly report and in updates. In short, I should have done this years ago when people were asking me to. But I can be stubborn.
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