This is a study I wanted to do on strikes with abnormally high open interest and if it affects underlying price movement.
VNQ has pulled back from its ATH to inside the ATB neutral zone.
It also closed with a bearish engulfing candle signaling high probability of sideways to downward trend in next 30-45 days.
Testing a horizontal Iron Condor strategy based on...
For missing out on the energy rally this week, I bought the dip in Real Estate today and yesterday.
I don't think the Fed will allow a deflationary meltdown as in Q4 2018. "Not QE" should be fantastic for inflation hedges such as Real Estate and Energy. This move into oversold on a long standing uptrend is a good place to buy for the long haul.
Long VNQ and...
VNQ is close to breaking down vs Gold. Means Gold more favorable than VNQ if it breaks down.
Why it matters:
Assumption 1: If this long macro cycle rolls over, it is better to own Gold than VNQ.
Assumption 2: If better to own gold than VNQ, is it better to own Gold vs SPY? That too is about to roll over.
One of the core holdings in this growth-slowing environment is having a good day.
I'm long shares of VNQ that I don't really touch very often. Sometimes when I see them oversold I leverage up with calls, but I missed this recent bottom.
There was a break downward but that recovered quickly. It's now poking to the upside. I think this can be bought on any...
Today could be a good entry for a short. 5 min/30 min chart shows Bullish Div.
Look at the past 5 years for this ETF. If past predicts future this stock is going to drop back to support under $86. Then there is the unusual options activity of 350 million dollars that one trader opened 40,000 contracts Sept. 86/81 put spreads. This is very tempting!
Let me know...