The REIT Idea for the Short-Term
One way to play the potential volatility of an upcoming policy speech or similar market-moving event is to identify a stock that is poised to make a move. Last week, I outlined a squeeze tactic that allows price action to dictate the trade. The analysis of the iShares MSCI Mexico Investable Market Index (EWW) used Bollinger Band contraction and price compression and is designed to capture short-term moves. Later that day, the short side of the trade was triggered and, true to the squeeze strategy, I exited the position today for a small 2% profit.
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