Monday, July 20, 2009


Here is an hourly chart of URE the Ultra Real Estate ETF...

Click for larger, Browser back...

Today, was a pretty monumental day in the markets. The SPY broke its resistance line at $95 and held there for about an hour. Only the end of day sell-off was able to cause Price to retreat.

I celebrated by buying a half sized position in URE. Yes, it could risky. Yes, we are still in a recession. Yes, we will still be in one for a while. Yes, real estate problems are still bountiful. On the other hand... can you think of a sector with fewer shorts against it?

It seems in the chart above, that Price is ready to run since there is a breakout here as well.

I'll be maintaining my stops so that risk is under control, but they will (hopefully) be loose enough that Price has room to continue a pattern of higher highs and higher lows. That's what its all about!

Also of note is SLV...

Click for larger.... yada yada

...and UGA with a very similar chart. I have been in them both for a few days now. Funny thing about these, they would be of no use to a day-trader at all yet in a swing, we can make good profits!

1 comment:

  1. I'm really jealous on that SLV. I stopped watching it ( boring, choppy intra charting). Got too interested in those skunk SDS/TZA/DXD etf that aren't even moving. Not that they won't in the future.

    You really know these these etfs. My thoughts on URE. LIKE IT VERY MUCH cuz its a nice channeler. The 5,3 daily stoch could be mistaken as trending, but upon Zoom, it is definitely rolling and (without drawing lines cuz I'm not signed in) it looks like it is @ resistance of 3.75ish which looks more important than 4. Also note it is now in the upper pocket of the dual 1/2.5 BB pocket.