What’s Working … What’s Not
It’s early in the session at about 10:52 a.m., EST; the market itself is telling us where to look.
Gold (GLD) is heading lower as expected.
Bonds (TLT) did not island gap higher but are resuming their downtrend … very dangerous indeed.
Real estate opened gap higher (not expected) but then quickly reversed and is now trading lower.
This update will focus on real estate. That trade is still active (DRV-22-05), as explained below.
Real Estate IYR, Daily
The briefest explanation for today’s action, is that we’re in a test of the up-thrust posted by IYR on October 18th.
Tests can pass or fail.
The close of today will be important along with tomorrow’s action as well.
Even if today closes lower, the test can still fail at the next session (or later) if today’s high is exceeded.
With that said, IYR is now at The Danger Point®
The DRV-22-05, trade remains active.
However, if IYR looks as if it’s going to post a higher close, a failure of the up-thrust may be in the works.
Subsequent position action is at the discretion of the trader (not advice, not a recommendation).
As of this post, IYR is pressuring lower, currently trading down – 0.21-pts.
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