Are you looking for trends in this market?
Here’s one that stands out: U.S. Real Estate is making new All-Time Lows relative to the U.S. Stock Market:
Seems more like the American Nightmare, and not the “American Dream” that the National Realtors Associations pay so much in marketing to convince people of such nonsense.
The trend here is down. Very down.
According to Dow Jones, “this Index is designed to track the performance of real estate investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies”. You can download the Fact Sheet here for the Dow Jones U.S. Real Estate Index.
No one wants this stuff.
They would rather own U.S. Stocks, obviously.
This is information.
Do you know where money is going?
Have you ever wondered what Relative Strength looks like? Well, it’s the exact opposite of Real Estate:
Notice how Semis are making new highs relative to both the S&P500 AND Technology, more specifically.
So how much room does it have to run?
Well it seems quite obvious that our next target should be (it has been) the former all-time highs from 20 years ago.
With Momentum in a bullish regime and strong relative strength, why change our bullish approach?
We’ll be discussing Semi’s and our favorite stocks in the sector this Tuesday night on our Live Monthly Conference Call. Premium Members, if you cannot make it live, the replay and slides to download will be available here by Wednesday morning.
What other major trends would you like to discuss on Tuesday?