We typically try to avoid entering new trades on Fridays. There tends to be choppy trading leading into the weekend. However, this is a trade that we feel can be entered if it meets our entry criteria tomorrow. We still run the risk of having it chop around and stop us out prematurely.
The thesis is part fundamental and part technical. Fundamentally, commercial real estate is in very rough shape. Technically, it has broken below support and is now re-testing it from below. This could be a nice entry opportunity to get short if we roll over. We are keeping a very tight stop loss which means low risk, but also increased risk of being stopped out early. The trade is as follows:
Commercial Real Estate ETF (IYR)
Sell Short: IYR
Stop Limit order:
Stop price: 40.91
Limit price: 40.83
If triggered into the trade, then place your buy stop order above at 41.61.
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