Who besides the Wall Street media believes the housing market is near a bottom? Well then put your money where your mouth is and short the SRS. SRS is the ProShares UltraShort Real Estate exchange traded fund (ETF). The SRS goes up as the housing index goes down. In the chart (Link 1) you can see how the SRS banged up against 120 four times then retraced before breaking through with fury at the beginning of the month. So, 120 is now strong support. In the 15 minute time frame (Link 2) you can see the SRS gaped above 120 on Jan. 3 on it's way to the 135 area, then retraced testing 120 the first time. It then screamed to 145 on Thursday of last week, from where it had to retrace. On the second retracement it successfully retested the 120 area this time at 123.80 to be exact. The described action gives us our beloved W formation. But the SRS is not a buy yet. The stochastic is at about 50 and aiming down. However with the selling volume abating and the SRS resting on it's eight day EMA I would not let it break 130 before taking a quarter position.
Notice that buying the SRS you are going to take a short position.
Link 1:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=srs&time=8
Link 2:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=srs&sid=&o_symb=srs&freq=7&time=3
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