Real Estate: It’s The Real Thing

The triple-bullish real estate fund symbol DRN has had its share of volatility the past couple of years. To my eyes, real estate has been one sector clearly entering a bear market. The big question at this point is whether the consolidation we’ve been in the past few weeks is preceding a recovery bounce or a new leg down.

(Click on image to enlarge)

slopechart_DRN (1)

I can’t say for sure, but it seems to me the downtrend is firmly in place. There are few sectors where you see the sort of resolute downward action in all three moving averages that you’re seeing with real estate. This instrument is too jumpy for my taste at the moment, so I’m sticking with IYR. As interest rates continue to heat up, real estate should continue to melt down. Here’s a closer look at DRN with three exponential moving averages:

(Click on image to enlarge)

slopechart_DRN

Disclaimer: This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult ...

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