For Growth Investors, there were a few shocking days over the past months where the indexes went up but our portfolios went sideways or down. There's no worse feeling than having the market go up and have your portfolio go down.
The cause was sector rotations as investors moved into "discounted" stocks that were hit the worst during the market crash of 2020...
Model Forecast for the Housing & Real Estate Market:
Debt needs to be paid. Household Debt Payments have bottomed.
Household Debt Service Payments as a Percentage of Disposable Personal Income (TDSP):
If anyone has been watching the SPDR sectors lately, XLRE has quietly outperformed. Strength in REITS usually signifies a strengthening economy. Maybe this is an under the radar reopening play? Options premiums are dirt cheap and might be worth a look. Anyway, the charts speak for themselves.
The first chart shows $XLRE breaking through resistance. I find the base formed before breaking through to be bullish.
The second chart shows XLRE relative to the SPY. Looks like the long ward down trend is over.
Can XLRE outperform moving forward?
S&P 500 Sector Performance: www.tradingview.com
The past week there was rotation into Energy (XLE). There is precedent for rotations into energy marking tops and continuing as safe havens during corrections.
In the bottom chart, you see the rotation happening in September 2018, just before three months of market declines (21% on S%P 500 and 24% for Nasdaq).
Looking back further to the 2000 tech bubble, look...
Here are the sector winners and losers the past week. XLB (Materials) wins out, gaining 1% compared to the other SPDR ETFs combined. XLC (Communications), XLK (Technology) and XLE (Energy) at the bottom.
Breaking out XLB into it's top performing stocks for the week, you can see which ones carried the weight of the moves including EMN, LYB and CF. All of these...
This is a Bullish indicator signaling XLRE's price could rise from here. Traders may explore going long the stock or buying call options. I identified 48 similar cases where XLRE's MACD histogram became positive, and 34 of them led to successful outcomes. Odds of Success: 71%.
Weekly Chart :
The Macro Picture looks positive due to the Trading above the MUT (Major Up Trendline).
Daily Chart :
The Intermediate Trend (The Grey Trendline) Contains 2 Minor Downtrends, and the last one is getting squized between the lines.
Looking for Penetration of...