Skip to content

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

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

WRE V IYR

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.

 

From → List of posts

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: