Real Estate: The Big Chill


I live in the 2nd hottest real estate market in the country. Or at least it was in July:

Phoenix No 2 Among Hottest Housing Markets In U.S.


This morning on my way back from picking up a cranberry scone and large coffee I was listening to local Phoenix news radio, the topic was how Phoenix real estate was cooling off, that new listings had gone from an average of 20 days to sale to now 40 days and that prices were falling and sellers were becoming more motivated. When I got home and watched the market open, this chart was the first I pulled up.

IYR is one of the stocks we trade in Blue Line Premium Trading Service, so the following note was sent out to subscribers at noon (Arizona time) today:

"Yesterday IYR closed below its Fibonacci reversal window while triggering a fresh Sell Signal in its Intermediate Term Trend Model. The IYR Sep 16th $100P is trading around $2.75 and with almost four weeks to expiration has attractive upside potential. The last Sell for this model was on Apr 27th, shown as part of Wave (1) down on the chart, taking price from $106 on Apr 27th to $86 on Jun 14th. If a Wave (3) down is unfolding this next leg of decline should exceed the May-Jun decline in both size and speed.

"At a price of $86, the IYR $100P will be worth at least $14. The target for this next leg down is mid-80's to mid-70's between Sep 16th and Oct 21st. "


Thinking of joining Blue Line Premium or Blue Line PRO? Please do so before Powell's speech from Jackson Hole on Friday. Details to follow: Market crash window Sep-Oct 2022.