SRS-Trade

Is SRS finally going to have its day?


This is a story that has had me in disbelief for quite sometime. No matter what came out about real estate, double dip, lawsuits that may put REO/Short Sale buyers out on the street, investigations and fines galore, huge overhanging inventory, etc... all of it and SRS (a short on real estate) can't get off its butt. I guess that may have something to do with the Fed moving all of that garbage on to it's balance sheet. Really, I can't think of any other plausible reason.

That may be about to change.

Reuters quoted Robert Shiller as saying a 10-25% slump in housing prices "Wouldn't surprise me at all". I wonder how our mortgage member feels about this? Want to chime in Jack?

As for SRS...

 The potential is certainly there. Here we have a conservative bullish descending wedge so the implied price pattern target is about a double.

 As with just about every wedge, it transformed into a lateral base and now we're getting some volume and some movement. My best guess is that this will end up looking like a complex inverse H&S bottom with a move to resistance around $17, a pullback to $15 and hopefully a move on volume back through $17-ish (sorry about my sad graphics).

3C daily has been positive in the base area and is now in a leading divergence. Also SRS is one of the few bear ETFs actually up on the day.

Keep an eye on this one, I've been watching in disbelief for 6 months now, amazed this hasn't shot up higher.