REK Forecast + Trading Strategies


Bullish Case: With continued macroeconomic instability and real estate pressures (interest rates, inflation), REK may continue its bullish trajectory. Positive momentum is evident from the slight neutral holding despite a historic downtrend.


Bearish Case: The likelihood of negative returns is historically high. Increasing interest rates combined with weak real estate markets are discouraging REK prospects. Historical data shows substantial downtrends.


Potential Outcomes:

1. Continued real estate decline (60%)

2. Short-term economic rebound (20%)

3. Major intervention in real estate (10%)

4. Stagnation of economic policy (10%). These predictions align with historical and present macroeconomic data.


Trading Oracle: Bearish strategy with short volatility. Establish a credit spread by selling REK 10/18/2024 19.00P and buying 18.00P. High reward:risk ratio, leveraging high historical downtrend probability. Time outlook: 3 months.


July 18, 2024


ProShares Short Real Estate Forecast

REK      ProShares Short Real Estate











Correlated Assets

Assets that tend to move strongly with REK



LI Forecast + Options Trading Strategies   LI  Li Auto (0.39)


VFC Forecast + Options Trading Strategies   VFC  VF (0.2)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.01)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.61)



Uncorrelated Assets

Assets with little price relationship to REK



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.01)


VFC Forecast + Options Trading Strategies   VFC  VF (0.2)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.39)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.61)



Anticorrelated Assets

Assets that tend to move strongly against REK



LI Forecast + Options Trading Strategies   LI  Li Auto (0.39)


VFC Forecast + Options Trading Strategies   VFC  VF (0.2)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (0.01)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.61)





Become a more profitable investor with AI optimized trading strategies






×

Chat with REK


 Ask any question about REK!