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Recent trades updated: Wal-Mart and Real estate stock rotations

October 21, 2014

The position in WalMart (WMT) against NASDAQ 100 Trust (QQQ) was closed for a profit of 4.1%. This was posted on 15 October.

In early September, I updated the stop loss on my trade in Vornado Realty Trust (VNO) against iShares U.S. Real Estate (IYR). This trade has now been stopped out. It didn’t follow through on its set up but through taking half and moving the stop loss to break even, a small gain was made, maybe enough to cover dealing costs.

The remaining half was stopped out at the entry level of 1.46307 on 17 October. With a gain of 1.2% on the first half portion of the trade, total gain was 0.6%.

Vornado Realty Trust (VNO) v IYR


The trade was entered at A, halved with the stop to break even at B, stopped out at C. At X, there was a bullish RSI divergence, albeit with RSI slightly above 30 but this shows again that these divergences work. Whilst the trade hadn’t made anything, the weekly RSI and MACD divergence set up remains in place.

Update on Washington Real Estate (WRE)

This is a slow burner, I last updated this chart in the early September posting (above). WRE against iShares U.S. Real Estate (IYR) continues to develop its base. This pair is inversely correlated with the broad market (WRE is a defensive stock).

WRE v IYR daily chart


Between the red arrow (23 September) and the blue arrow (15 October), the broad market fell and WRE outperformed IYR.

I’m expecting this base to continue to build, the moving averages to cross and an uptrend to emerge but these long term moving average crossover charts do not give the timing. For that we need other tools.


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