NFTRH+; A Sector Short Setup

IYR is one that I had shorted into the February correction, covered and then have since left it (and other rate sensitive areas) alone due to an unclear interest rate view. But considering the resumed long-term interest rate rise, I think it is worth a look. Click the (weekly) chart for a larger, clearer view.


IYR is bear flagging below the broken trend line. Weekly down volume has dwarfed up volume and MACD, RSI and AROON are all negative. The flag has repaired some of the oversold readings.

IYR does not appear completely convinced that yields are going to continue rising, but if the flag breaks down (below the green dashed line) that could change in a hurry. Since I am in portfolio balancing mode I am tempted to restart the short here (and consider risk management above 77), but if rates settle next week it could easily be an up week for IYR (within the flag) and a true short setup at the lower (red dashed) channel line, at around 76. So, I may also just sit on my hands for now since the flag has neither risen to test the channel or broken down. The initial target, if IYR breaks down, would be around 62.

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.