Skip to main content

Interesting action in IYR

We recently pointed out that the iShares Dow Jones US Real Estate ETF (IYR) had dropped out of a trading range and had the potential to fall further. Today we saw some follow-through on that call.

Today IYR ended up down $1.25 at $80.72. This was a 1.5% one-day loss. What was notable, however, was the intra-day price action. After being down as much as 2.7%, in the last half hour of trading IYR jumped up 1.2% from its low on relatively heavy volume. Without that spike, it might have closed below $80.

Tomorrow it will be interesting to see if the IYR bulls can build on the last minute positive action. Today's closing price of $80.72 is just below some recent resistance. We should get a test right away.

By the way, since I made the call that IYR was poised to fall, the ProShares UltraShort Real Estate ETF (SRS) has had its usual wild ride. If, the day after my post on IYR, you had bought SRS at the open (on May 17 at $83.50) you would now have gained a tidy 4.1% over the course of one week. If you sold immediately, I wouldn't blame you; these Ultra ETFs are pesky beasts.

Comments

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.

Interactive Ads - Google one-ups Yahoo again

Google's ( GOOG ) press release describing the expansion of a beta program for what are being called Gadget Ads has again shown that Google is unparalleled at melding technology and advertising to benefit its bottom line. Gadget Ads are mini-web pages or "widgets" that can be embedded within publisher pages. I have written in the past on Yahoo's ( YHOO ) Smart Ads and how, by more precisely targeting site users and adjusting ad content accordingly, they provide a much desired evolution of the banner or display ad format. Though Smart Ads and Gadget Ads are not really the same, I think it is fair to say that Google has seen the challenge of Smart Ads and has chosen to leapfrog Yahoo by rolling out its own update to the display ad format. The evolution of the Gadget Ad -- One of the trends on the Internet over the last year or so involves software developers creating "widgets" which can be hosted within web pages and blogs. Widgets can be pretty much anything