Futures are higher as I write this Sunday night and one group that looks poised to move higher if the markets continue to trek higher is the Commercial Real Estate stocks. The sector as represented by the iShares Dow Jones US Real Estate (ETF) (Public, NYSE:IYR) has been showing good strength over the past month rising steadily from the low $40's to the low $50's. It cleared its base in early March and has been flagging in a tight range for the past two weeks. Many traders keep betting against this group, but if you blacked out the name of the product, it would be hard to argue with price action over the past several months. If IYR can get over $51 it could signal a continuation of the breakout.

- MarketClub is opening up a 2 week trial available for only a few days. This is normally priced at $449 so its a pretty good deal to try it for free. -

Beyond the IYR ETF, many individual REIT stocks also look like they could move higher. Below is a list of a few that look very similar to IYR and are worth watching moving forward.

Simon Property Group, Inc (Public, NYSE:SPG)
Vornado Realty Trust (Public, NYSE:VNO)
Federal Realty Inv. Trust (Public, NYSE:FRT)
The Macerich Company (Public, NYSE:MAC)
Developers Diversified Realty Corp. (Public, NYSE:DDR)
Hospitality Properties Trust (Public, NYSE:HPT)

Good Trading,


Joey

I wrote about a theme I am seeing play out Tuesday night for Chartadvisor.com. Basically, I have seen a small rotation out of small caps into large caps. If this continues it could signal a subtle shift in investor sentiment towards safety. Following the excerpt below I posted expanded charts of the stocks highlighted in the article.

Small caps have been outperforming their large cap peers throughout the past several months, but over the past couple of weeks there has been a subtle shift back toward large caps. Typically, money rotates from sector to sector based on current investor sentiment. During periods of strong market performance, riskier asset classes such as small caps tend to outperform as investors seek maximum performance. During more volatile periods, investors seek safe places to invest their money such as Treasuries or large cap stocks with strong dividends. We mentioned in a recent article that there might be subtle rotation into large caps as investors seek to protect some of their recent gains.

Click here to continue reading "Large Caps poised to pop"

Wal-Mart Stores, Inc. (NYSE: WMT)

General Electric Company Co. (NYSE: GE)

Goodrich Corporation (NYSE: GR)

Hershey Company (NYSE: HSY)
Good Trading,

Joey

Also, MarketClub is opening up a 2 week trial available for only a few days. This is normally priced at $449 so its a pretty good deal to try it for free.