Late last week the iShares Real Estate ETF (IYR) staged a ‘Death Cross'. This is where the ETF's 50-day moving average moves below the 200-day moving average. With the stock below both averages, and the 200-day MA looking ready to curve downwards (and with other indicators such as On Balance Volume showing distribution), it looks like the Real Estate sector is entering a bear market.
I looked up the top-10 holdings of IYR and investigated their charts. I was curious if IYR's poor performance was due to just one or two top stocks, or if the entire sector may be entering a bear market.
The results strongly suggested all the sector's top stocks are weakening or have already entered ‘bear market territory'.
This is not a good time to enter new bullishly-oriented trades in the Real Estate sector, and any existing positions should be monitored closely.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2015 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com.
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