There are few chart events as interesting to me as failed patterns – that is, clearly defined patterns that are supposed to do one thing but crackle into doing something else.
The ultra-bull real estate ETF, symbol URE, is doing this right now. Because, here we are, on the first day of the new year, with the bulls stampeding all up and down America. Indexes are exploding higher. Happy days are here again.
But URE, in spite of an initial lift, is actually down over 1% as I'm typing this (and, in turn, SRS – everyone's favorite widow-maker – which I bought earlier today – is up over 1%).
For real estate to be moving so contrary to the market as a whole is terribly interesting.