The movement in the bond market has been throwing a few sectors around in the past few months. Today, I would like to highlight the ishares real estate ETF, IYR. You don’t have to look all that closely to see the tight correlation its had to the bond market (represented by TLT) over the past eight months. Keep an eye on that one. As goes TLT, so goes IYR.
Good morning, Slopers.
It’s very fashionable, I realize, to be madly in love with the US dollar and commit all kinds of atrocities against the Yen and Euro, but for the moment, I really think these latter two currencies have a chance at a turnaround.
Looking at the FXE (which is the ETF for the Euro – – kind of a poor man’s way of trading the forex), it has completed an island reversal. Going long the FXE with a stop at 102.69 seems like a pretty interesting low-risk trade.
A price/earnings ratio of nearly 50 and a gain of 800% over the past four years……..and yet people still keep bidding it up:
Given the fact our forthcoming president is a real estate mogul, it’s amusing that the industry most vulnerable to a big price drop is, in fact, real estate (I’ve already witnessed it here in the Silicon Valley, where prices started slipping this summer).
Back on October 21st, before the election, I suggested SRS as a buy. It’s up about 13% in that very short amount of time, and I think there’s plenty more to come.
Here’s your swing-trading watch-list:
Long Splunk (SPLK)