On an ETF like SRS, in which it is a leveraged derivative of
another underlying ETF (in this case, the IYR), I usually look at
the chart of IYR when trying to decide what SRS and IYR are going
to do. Right now, if I objectively look at IYR, four days ago
it passed the 20 Day, today it's probably going to close over the
50 day and it looks like it will overtake the 200 day in a few
days. Those are of course all positives for IYR and negative
for SRS.
On the negative argument against IYR, the 200 day is FALLING and
IYR's recent rise has been on decreasing volume (wedging up).
I've done well trading SRS this year and perhaps very short term
it is over sold and due for a bounce, but its hard for me to look
at the IYR chart, along with the positive tone of the market, and
come to the conclusion SRS is basing.
SRS chart pattern
SRS
Posted by kurzweg on 20th of Jul 2009 at 12:24 pm
On an ETF like SRS, in which it is a leveraged derivative of another underlying ETF (in this case, the IYR), I usually look at the chart of IYR when trying to decide what SRS and IYR are going to do. Right now, if I objectively look at IYR, four days ago it passed the 20 Day, today it's probably going to close over the 50 day and it looks like it will overtake the 200 day in a few days. Those are of course all positives for IYR and negative for SRS.
On the negative argument against IYR, the 200 day is FALLING and IYR's recent rise has been on decreasing volume (wedging up).
I've done well trading SRS this year and perhaps very short term it is over sold and due for a bounce, but its hard for me to look at the IYR chart, along with the positive tone of the market, and come to the conclusion SRS is basing.
Anyway, that's just my perspective. Good Luck.
one more note on IYR
Posted by kurzweg on 20th of Jul 2009 at 12:28 pm
As IYR creeps over 33, one could argue it is setting up to break out.
It could also be forming
Posted by asantana on 20th of Jul 2009 at 12:32 pm
It could also be forming a double top, IYR that is. Many likely scenarios.