Livermore’s Rules; Going Short
From his 1923 book (Reminiscences), Livermore’s rules for going short were fairly blunt:
‘I’m not interested in shorting a stock until it goes down and stays down’
It’s possible that’s what we’ve got with real estate, IYR.
This past trading week was IYR’s opportunity to regain balance and attempt to move higher.
It didn’t happen.
Instead, we got a struggle for several days; ultimately breaking lower, late during the Friday session.
Note the volume increased markedly from the day prior.
We’re short this sector (not advice, not a recommendation) via DRV. There are times were significant reversals start slow and take time to build … this could be one of those.
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