Real Estate Stocks Are Rallying; Should You Be Buying?
Today’s
PowerRatings Heat Map article will focus on the Real Estate sector.Â
This is one of the many sectors with multiple low PowerRatings stocks. Each square
contains one stock symbol and is color-coded by it’s PowerRatings number. Stocks with high PowerRatings (8 or higher) have been
historically proven to outperform the S&P 500 over the next 5 sessions by up to
a 14.7 to 1 margin. Low PowerRatings have been shown to underperform the
S&P 500 over the next 5 days. These stocks should be put on a list of stocks
to avoid. More aggressive traders may want to keep an eye on these stocks
for a potential short entry.
With
PowerRatings Heat Maps we can quickly look at the market as a whole and see
where our historical edges are or we can zoom in on a particular sector for a
deeper look. Also, Heat Maps are updated throughout the day to provide you
the most up-to-date information as the market changes.
Here we have a close up of the Real Estate sector:
We will look at daily charts of low PowerRated stocks in this
sector, which should be avoided or shorted if you are a more aggressive trader.Â
Accredited Home Lenders
(
LEND |
Quote |
Chart |
News |
PowerRating)
Sub-prime lender LEND has a low PowerRating
of 2. This tells us that buying this stock carries greater risk, especially
since it has ran over 18% in the last 2 weeks.
Public Storage Inc.
(
PSA |
Quote |
Chart |
News |
PowerRating)
S&P 500 member and self-storage leader Public Storage has a
low PowerRating of 3 and has run up recently. Buying PSA at these levels
also carries    higher risk. PSA has been trading below its
200-day
moving average since 5/1/07, telling us that it is now in a downtrend.
Redwood Trust Inc.
(
RWT |
Quote |
Chart |
News |
PowerRating)
Real estate investment trust company Redwood Trust
(
RWT |
Quote |
Chart |
News |
PowerRating) also
has a low PowerRating of 3. Aggressive traders should keep stock’s with
low PowerRatings on their watchlist
for a possible short entry.
If you would like to attend a free class which covers this
research and strategy further, please
click here
for the calendar of the upcoming online classes. Topics
covered include our latest research on
entries and exits, and
how to use PowerRatings with our new
Preferred Stock List.
For a free PowerRatings trial,
click here. If
you have any questions about PowerRatings or the new Stock Indicators please
feel free to email us or call 213-955-5858 ext 1.
Darren Wong
Associate Editor
Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding.