In line with the weak homebuilder group, I see that REIT's are looking particularly weak. In my broker (TD / thinkorswim platform) list of stocks the homebuilders are found under consumer discretionary whereas these REITs are under financial - but I think weakness in both would certainly be related. Although the XLF looks bullish my broker has its own charts for sectors. See the weak looking financial chart here vs XLF:
It looks ready to break down in contrast to XLF so I poked around the groups and saw that most of the REIT's are very vulnerable looking as well as the individual charts within them. This made some sense since we've discussed homebuilders looking weak.
I'll try to post some of these later as I don't have time to do it now, but I ran a filter on all REIT stocks with market cap at least 250M and volume at least 100k. I did this to filter out unreadable charts that I wouldn't trade anyway.
I am going to look for good entries to put on a short position as a small hedge to my longs. Here's my quick list that I found after one scan. These I would look to narrow down to the best looking chart and best risk/reward entry point.
PPS
NCT
RWT
RYN
SKT
SPG
STAG
TCO
CXW
WY
EXR
GEO
There were plenty of weak looking charts which gives me some confidence that shorting in the group is a good idea.
i forgot to mention the short interest ratio. did a quick check and RWT and RYN are no good they have ratios of 11.6 and 13.6.
Heres the rest:
NCT 1
PPS 3.6
SKT 4.8
SPG 3.7
STAG 2.9
TCO 1.1
WY 1.6
CXW 2.6
EXR 1.6
GEO 3
here's the rest of the short interest ratios:
NCT 1
PPS 3.6
SKT 4.8
SPG 3.7
STAG 2.9
TCO 1.1
WY 1.6
CXW 2.6
EXR 1.6
GEO 3