IYR/VNQ

J

Jackpot

Looking at these two very similar (both real estate) 1 year charts, it looks like free money longing supports and shorting upper resistance. It has recently hit the lower end of channel. Of course, it works until it doesn't.
 
i960 said:
I suggest you banish this term from your cranium.
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Well, obviously it isn't free money (unless its arbitrage.) I meant that it is highly cyclical and predictable this year and only "looks like" free money.
 
traider said:
Are you looking trading the pair or just each outright
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I actually opened monthlys on IYR last session, as it was more liquid. Seeing as they're both real estate ETFs with practically the exact same pattern, just one would be fine. There seems to be much movement left to reach the top of the channel and it did bounce off support.
 
For shits and grins, here's the ratio spread on the monthly:

Chart_17-12-25_19-47-08.png


I think the late 2017 shift might be related to this: https://www.bloomberg.com/news/arti...gets-a-new-index-but-nobody-knows-what-s-next
 
Nice pop today! Was up well over 50% at one point but still holding everything, expecting another dollar move up at least on the underlying by next week. If it goes drops to around 20%, I'm getting out.
 
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