Earlier this morning, before the market was open, I believe the DOW futures was up about 55 points, therefore you had to understand my surprise when I checked on the DOW about half an hour ago and it was down 60 points. Of course, we will expect this type of "NEUTRAL" market for a while until Sept. 16, 17 when we would hear more about FED's decision in bond tapering. But if you take a look at DXD, which reached its 12-mo bottom of 31.89 on 8/2/13 which was also the day that DOW made its ALL TIME High. It has since been climbing up steadily, traded at a range of 32.60 and 33.07, closed yesterday at 32.74, which is higher than its 20D MA of 32.41 but still lower than its 50D MA of 33.66, but I believe it is now on an upward trend and if it will surpass 33.66 in the next two weeks, watch out, it may continue to rise.
I am still trying to buy more when it dips and I strongly advise you may consider buying a few shares if you still are holding a long of longs in your portfolio. Judging by what is going on lately and the low volume, a single bad news, such as the official announcement of bond tapering, will trigger an avalanche. I believe the chance of bond tapering being announced in the next FOMC meeting is at least 70%. Of course, I can be wrong.
I even bought some SPXS at 9.23 yesterday (thanks to Kel's list) and just sold it today at 9.67 for profit. Bought SRS yesterday at 22.19 and sold it for 22.72 (a bit earlier) for profit. Still hold on to my DXD for insurance and even bought some EEV. Tempted to buy some TMV (DIREXION DAILY 20+ YEAR TREASURY BEAR 3X SHARES ETF). Should have bought it yesterday. Should never hesitate.
I am now having 72% of cash in my IRAs, with about 11% short ETFs and do not have very large positions on any one stock. If you still have a lot of REITs, whether they are mREITs or not, I strongly suggest you to reduce your positions and same apply to any other fixed income equities especially bond related. It will be ugly, very soon.
Frankly, the ugliness has already arrived for many REITs off all types. Healthcare, technology, mortgage, hybrid, equity....all getting spanked good and hard right now. So, instead of selling I'm just holding on and have plans on buying more of a very select few if things truly get out of hand. I think NRF would be a heck of a buy if it gets all the way down to or below $8. I think NRZ is value priced again and would be a great bargain under $6. I also have my eye on BMR which just hit a fresh 52 week low today but will wait some more on that one.
Back in 2008, I remember picking up some of those REIT preferred shares for a song. NCT/NRF/SFI all selling for a few bucks each. I surely hope that level of carnage does *not* happen again. Not sure my heart can take that.