Take a look at the SKF in the daily time frame. Notice how it's bouncing off of the zone occupied by the 100 dma and 200 dma, and the stochastic is on the bottom, turning up with the fast line crossing over the slow. Nice!
Now check out what I call the parent index in SKFs case IYR. Its symmetrically opposite as it should be! Nicer! it has had it's retracement and is now ready to be shorted into, short into with SKF.
I don't want to get carried away, but this could be a big hit, but lets get another 25 shares of SKF if it breaks 165 with force. If SKF hits 170.00 take another 1/4 position.
2 comments:
Am I missing something here? what does the ultrashort financials have to do with the dow jones real estate index????
No you are not missing anything, it's my goof, I should have been saying IYF. The IYR and IYF are highly correlated with each other reflecting their dependence on the overall market as you can see from the charts. I got lucky that the overall analysis did not change although the stochastics on the IYF daily chart had already turned.
thanx for pointing it out.
I am long 50 shares of SKF
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