Moving Ahead of The Fed
Waiting, waiting, waiting … ‘gonna die, waiting.
For real estate IYR, the waiting part’s, already over.
This post back on April 27th, identified the trade set-up.
The prior all-time highs analysis for IYR, failed with an up-thrust reversal.
That told us, downside forces were in control.
Adding to that, we had the largest cap equity in the sector ProLogis (PLD), showing a massive downward thrust lower; possibly the largest one-day event, ever.
Now, there’s more.
The two charts below are in 3-Day increments. As of this morning, we’re in a new three-day period.
For three-days just ended, down-thrust energy for PLD, posted levels not seen since before February of 2005 !
Not even the wipe-out during the Financial Crisis of 2008, generated a similar 3-Day period.
What that means for PLD, at least, it’s in a territory of its own … literally off the chart.
ProLogis PLD, 3-Day
Compressing the chart to put it in perspective. The data below, goes all the way back to February 4th, of 2005.
The Fed-Man Cometh
All of that does not mean real estate can’t rebound higher after 2:00 p.m., EST (11:32 a.m. EST, as of this post).
Anything can happen.
The stop for the short position via DRV (DRV-22-02) is currently set at DRV 32.71 (not advice, not a recommendation).
At the open, IYR was lower and has continued lower but has not posted a new daily low.
That leaves the door open to the upside if there’s enough perceived ‘relief’ from any Fed comments.
The main objective of this post is to put forth the possibility, events may happen faster than anyone expects.
If there’s any kind of rally, it’s likely to be brief.
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279