Oxen Group’s Buy Pick: SRS

The Oxen Group, for Thursday, is looking at a possible bear day depending on data from retail and jobless claims. The one sector that may be the most affected again tomorrow by the continue rise in interest rates is housing. The issue with higher interest rates is obviously getting loans. Information from Zillow.com showed that interest rates moved up to 5.7% rate for mortgages this past week. An increase from last week. That threatens this bullish run for the housing market. Further, if jobless claims or retail were weak this can further threaten the housing market. Therefore, the Ultrashort Proshares Real Estate ETF (SRS) could have a bullish day. The rising rates continue to threaten the housing market. The housing sector had relatively little news in after hours beside the interest rates. That little news will have no reason to drive up the market when the rates are fresh on investors’ minds. Technically, the ETF is in a position to increase, as well. Fast stochastics look ready to trend up, the stock is near its lower bollinger band, and it is undervalued on RSI. All these are signals for an up day for SRS. Futures are up slightly, but the market really depends on the data in the morning. The housing has risen too much lately, and it needs to be pulled back again. Tomorrow, this market will pull back sending SRS up a lot.

Entry: Recommend buying SRS within first 15-30 minutes.
Exit: We recommend exiting after a 2-5% increase.
Upper Resistance: 22.50

Oxen Group’s Buy Pick: SRS