A Change Of Pace
I was going through my charts and came
across a group that has been very quiet,
yet
has been
performing well—the
real estate market, more specifically the Real Estate Investment Trusts (REITS).
REITS have been moving up quietly over
the past year and have showed some nice gains. The reason behind the move is (as
you already know) the boom in the housing market over the past couple of years.
If you look at the percentage change charts comparing the S&P 500 to the Dow
Jones Real Estate Index you can see that real estate has been outperforming the
S&P.
Among the performers
moving nicely in the sector is Duke-Weeks Realty Corp. (DRE).
Last year sales grew 34.78% and EPS rose 25.62%. The company owns a portfolio of
958 rental properties which are mostly industrial and office properties.Â
DRE is scaling up the right side of its multi-week cup. Note:
On a weekly chart you can see a double bottom has formed.
Equity Residential Properties (EQR)
manages, owns and operates multi-family properties. Sales grew 16.51% and
earnings grew 47.60% last year.
EQR
is poised to break out of its handle.
I know, there is not much
luster in REITS as you find in the tech sector, but as a trader you should
always look for opportunities in ALL sectors. Like Mark Boucher said in his
Hedge Fund Edge course…“you
can always find a market to make some money.“
Leading the way for the Sector funds
was the Broadband Holdrs Trust (BDH)
which moved higher by 5.0%
In a distant second was the Internet
Holdrs Trust (IIH)
which gained 3.5%.
Also as we discussed yesterday the
Semiconductor Holdrs Trust (SMH)
move up 3.0%.
After putting in a good show yesterday
the WEBS-Korea Fund (EWY)
lost 3.4%.
The Consumer Staples Select Sector (XLP)
closed lower by 2.6% followed by the Pharmaceuticals Holdrs Trust (PPH)
which moved down 2.2%
Remember that all securities are
risky. In any new trade, reduce your risk by adjusting position size and
placing open protective stops where you will sell your new buy or cover your
short in case the market turns against you. For an introduction to combining
price stops with position sizing, see Loren’s lesson, Risky
Business.
Have a great weekend!
Greg
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