Saturday, October 11, 2008

Why SRS went down

Voltron says: According to the Wall Street Journal, ProShares UltraShort Real Estate (SRS) topped the list for Selling on Strength, which tracks stocks that rose in price but had the largest outflow of money.  Based on the volume of trades, it looks to me like someone had made a lot of money in SRS and suddenly sold it all to take profit, but there were not enough buyers because people were too freaked out on Friday to do anything.  There was certainly no positive news about commercial real estate on Friday.  Don’t look at the price.  Look at the headlines.  When you start seeing REITs declaring bankruptcy, then it’s time to get out of SRS.  If I start seeing verifiable news that REITs are somehow immune to the coming downturn, I’ll admit I was wrong and bail on SRS.

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