How Is That Possible?

It’s possible, because price action is always the final arbiter.

Before the rest of the report, some housekeeping.

Real Estate IYR, has broken the down trend lines previously discussed.

A discretionary (not stop related) exit was performed on all positions at approximately DRV 46.45.

Trade DRV-22-02, is officially closed.

If the market turns around and looks like IYR is about to resume its downtrend, the DRV position could be re-established (not advice, not a recommendation).

As it stands, profit on the entire DRV-22-02, was in the vicinity of +19.2%.

That’s not too bad, considering the rest of the population is losing their shirts as reported here.

There were 25 DRV, transactions during the trade.

Where to Now?

Real estate can resume the downtrend, or it can test the underside of support, now resistance (shown below).

Under ‘normal’ market conditions, a test is typical behavior.

However, we’re in a financial collapse so anything is possible.

Real Estate IYR, Weekly

The chart above paints a familiar picture.

The overall trend is down. However, that does not mean price can’t go higher.

In fact, as we all know, the sharpest rallies occur in the middle of bear markets.

Whether we get one now, is unknown. Typical market behavior is to come back to the resistance area (black axis line) for a test.

Summary

From personal standpoint, I’ll take the near 20% gain (not advice, not a recommendation) and stand on the sidelines for a more definitive set-up.

Stay Tuned

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