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Simon Property Group update

June 18, 2012

18 June

Back on 21 May, I showed an example of an RSI divergence trade on a real estate stock pair. The pair was Simon Property Group (SPG) v iShares Real Estate (IYR). SPG is the biggest component of IYR. Here is what has happened since.

The pair was shown making a bearish weekly RSI divergence. There was also a bearish MACD divergence (12 and 26 weeks are the parameters).

Spgiyrweekly180612

Daily chart

Spgiyrdaily180612

 

  • Ideally, for a short trade, the criteria are a new high with an RSI that is below 70. This was not quite achieved, with the RSI being 70.83 on 15 May, the day of the high
  • The pair has broken below the late April to mid June range. This is the formation break discussed in the first article
  • Any overweight positions in SPG in a real estate portfolio should be cut

 

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