Follow-up for June 15th post
Original opinion: IYR under distribution, SRS under accumulation
SRS has since gained about 11%, but more importantly it’s now in an established uptrend.
IYR lost about 8% in the same period. SRS is clearly far from double if you’re holding it (it’s actually not based on IYR, but a double-inverse of DJUSRE index which lost 7% since June 15th). However in times of higher volatility, if you expect it, SRS will perform better.
Click charts to enlarge
Positive volume pattern showing accumulation – higher on up days, lower on down days.
MACD and others are cooperating.
TA is useless on Ultra ETFs? Ok, let’s see how IYR is doing.
IYR yields almost 9%! That’s for the positive.
Now negative: volume pattern is just the opposite of SRS, showing distribution (higher volume on down days, lower volume on up days).
Closed below 20ma which has been a pretty good support level during this rally. But need to see follow-through on that.
Today’s close qualifies for a Bollinger-Band-crash trade, so IYR *should* bounce tomorrow. Doesn’t have to, but should.
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