Declines at periods of monetary tightening seem deep enough for a low volatile sector. Overinflated prices for housing help the homebuilders, the raise in rent rates keeps on, but how sustainable is it
The pullback was expected, as we had been moving on the upper part of the range. We have touched the trendline and ready to take off, as has happend the past few times.
Additionally, it appears that the big move happens after moving over the 20 and 9 moving averages, which we did today. I expect a big move up either tomorrow 2022-01-13 or 2022-01-14.
Based on the previous CoT report, asset managers are short the Real Estate index 9,247 contracts which is 1,184% more than their average in 2020, and 840% more than their average 2019 positioning. Large deviations in asset manager positioning are good indicators of sentiment and risk.
For example, asset managers increased long positioning in the Energy sector...
Overprices real estate is on track with the rent payments inflations of over 3,5% per annum. Strong correlation with GDP numbers might play a bad game in Q2
This Real estate ETF looks like it's ready to rollover on the weekly timeframe due to it bearishly engulfing, being at a 1.272 fib extension, and the RSI trendline being broken after reaching overbought.
I will either be looking to buy puts in VNQ tomorrow or i will be looking to purchase shares of the 3x Ultra Short Real Estate ETF $DRV
Lots of real estate stocks in the same situation this week with a steep correction. I'd like to see VNQ cross my purple fib line before feeling like there's safe upward momentum of a new move.
Welcome to KWorld. *valuation matters. Correction Imminent. The same jobs do not exist. The same need for office space does not exist... Housing... smh.
#oldhead playbook
Epic Economics #investingnfts
VNQ is setting up for a Blue Sky Breakout above $108 in time
We can see the most recent pivot low holding around $101
With a mini pivot vs $104
We would look to entry above $108 with a stop vs the pivot low of $101
The mortgage applications print today was somewhat rough and represented an overheated market that's priced out the average citizen homebuyer. Mortgage apps actually declined in growth while building permits exceeded expectations. We can see that VNQ has been highly rangebound since the Covid rally and has failed multiple times to clear local highs at 107....
VNQ seems to be on an upwards trend and could be a good move to trade short term, while it also has a lot of merit if held long term as this stock has grown immensely in the last 6 months.
Vanguard Real Estate is showing some interesting things after quietly consolidating since early June. And now, it finds itself in the midst of a breakout of its previous all time high at $105.77. It is still very early, but if the VNQ can confirm any sort of sustained price action above the $105.77 price level on the daily and weekly time frames, fireworks could...
Housing stocks are looking to have at least one final push to all-time highs.
I would give this 2 weeks to play out.
BlueWave and Stochastic RSI are confirming the momentum
![VNQ: Why Im Watching Real Estate [VNQ]](https://s3.tradingview.com/p/PK8QiKYg_mid.png "Why Im Watching Real Estate [VNQ]")
