Category Archives: DRV

Real Estate Dead

January 8, 2021 By in DRV, IYR, Real Estate 1 Comment

As markets power higher, real estate topped last November; its been dead ever since.

IYR is telling us something. That something may be it’s about to be one of, if not the leader to the downside.

The last report said IYR is breaking down. This morning’s action was an upward test, then reversal.

Testing at Fibonacci 23.6%, (shown above) then reversing indicates severe weakness.

Inverse fund DRV (3X inverse IYR) is moving back into its prior trading range (11.00 – 11.50) after pushing lower in the early session.

Today could be the day. The day were real estate (IYR) begins a dynamic drop to much lower levels.

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.

DRV Trend-Line

January 7, 2021 By in DRV, IYR

DRV is the 3X inverse tracking fund for real estate, IYR.

Price action is now breaking higher (IYR, lower).

The 2-Hour chart of DRV (above) shows the trend.

There’s always a chance price action at the trading range lows in IYR, is a potential reversal to the upside.

With the overall markets at new highs, and IYR dead-in-the-water, probabilities favor downside action (DRV higher).

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.

Real Estate First?

January 7, 2021 By in DRV, IYR, SRS 1 Comment

Real estate IYR, may be leading the way down

Price action has been at the lows for three days and not retracing higher.

The overall markets are at all time highs … IYR can’t seem to get going to the upside.

Well traded inverse funds for IYR are SRS (2X inverse) and DRV (3X inverse); not advice, not a recommendation

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.

Real Estate, Ready?

January 5, 2021 By in BIS, DRV, IBB, IYR, LABD, Positions

The real estate index IYR has been struggleing at resistance for months.  Yesterday’s action was a swift break lower to the bottom of the range.

Inverse fund DRV (3X inverse IYR) had is largest single day gain since mid-May of last year.

The weekly chart shows the four-month struggle at resistance as well as MACD bearish divergence.

IYR may attempt to test slightly higher (DRV down) during this session.

If so, we’ll be looking to position short via DRV; not advice not a recommendation.

Moving on to biotech.  Yesterday’s action was a good example of negative bias in LABD.  Even though IBB closed lower, LABD closed lower as well.

The LABD position was closed out as shown (above) and the BIS positions maintained.

Note the R-Exit value.

This represents the gain on the amount risked. If $1,000 was risked on the trade, it returned $8,540.

Update will be forthcoming if/when a DRV position is established.

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.