As shown, real estate sector is in correction mode. Housing prices are at crazy prices and now 30 year mortgage rates are still climbing. Today the average was reported over 6.25%. Would expect these rates to continue on the upside while housing prices moderate.
Decent risk/reward at the red zone shown for a short on XLRE. Real estate market is slowing due to rising interest rates. Technically, we see a shift to downtrend with a retracement up for confirmation before likely continuation down.
XLRE closed at 42.35. XLRE has the best potential for a bounce here if the other sectors (and SPX/NDQ) can follow-through this week. A potential retest of 41.8 can be a decent buy, targeting a move to ~45.
XLRE is the Real Estate ETF. I'm a residential builder and my wife is a realtor, so I have my finger on the pulse of this ETF and XHB in particular. I can tell you for certain it's toppling over the edge in the real world... and the head and shoulders chart pattern here confirms it's doing the same in market-land.
Mortgage rates spiraling at a rate not seen in...
According to our elliot wave analysis, the US housing bubble has finally come to an end. This will spell out total destruction of most risk assets, so it's a good time to invest cautiously.
It won't take investors long to realize what is taking place. They are leveraged 10 to 1 on their real estate bets, so even a 10% move down starts sending margin calls out,...
While everyone is bullish real estate, the chart says price is likely to turn bearish.
As you can see from the chart, we just retested and rejected a long term bullish trendline, and now with that rejection, it sets up the chance for price to fall much lower from here.
The first supports are in the low 40s, and if we end up breaking that, we'll likely fall to...
Overall downtrend, but Real Estate sector ( AMEX:XLRE ) looks like it could continue to outperform S&P 500 ( AMEX:SPY ) to reach the top of the channel.
RSI-W, HOWEVER, is showing signs of exhaustion, potentially putting in a bearish divergence.
Haven't been active for a long time, busy with other stuff, but time to get back to charts.....
this ETF has just broken above $50 with a nice bullish bar. Ichimoku clouds validated further bullish scenario.... I am going to add to this trade
There is a big debate in what is going on in real estate. It is hard for me to imagine a scenario in which this has not peaked. However, I do not believe we will see higher rates until 2023 and that means we could continue to see it moving higher. The issue comes back to the supply and demand. Demand is still ridiculously strong. Big institutions have purchased a...
We are seeing a cup & head pattern on this real estate ETF.
How to enter a position:
First entry: 20% of full amount, when it breaks the high of the handle of the cup.
Second entry: 80% is the cross above the high of the cup, confirming the bullish pattern.
Profit-exit: Full target is $53 approximately. 10sma has been working...
Idea for Real Estate:
- Real Estate testing a double top after some exhaustion Sept-Oct.
- MBB's rolling over, rejected at -1 Std Dev:
- Because every other market component is already at +2/-2 Std Dev, and Real Estate is relatively less volatile than say S&P 500, I think the +1/-1 Std Dev is a good signal.
- We will have more confirmation next week depending...