REITS - Check Up

Markets have continued to make nice moves since the summer. Gold and gold stocks especially have been impressive.

Despite the relative underperformance of REITS during the same time period they are still up about 15% - so the call not to short was a good one.

What about now though and what is the outlook over the next few months. As bearish as I am on the entire sector from a fundamental standpoint there is really no evidence showing that the REITS as a sector will crash or start going down technically. The only sign that is worth following is the price deceleration as the REITS are still going up but at a lower pace and on lower volume than previously.

Before initiating a short position I would wait for the general market to turn bearish again, the trendline in the underlying charts to be broken, and some downside confirmation.

Here are a few charts demonstrating:

Weekly

Daily

Once the weekly trendline is broken I will try to make some type of downside retracement projection and a good entry/exit and risk reward setup.