Real estate stocks surged higher this week, in addition to energy stocks, financial stocks, and industrial stocks, as rotation takes over market leadership. Technology stocks took a back seat on Wednesday, with the NYFANG index suffering the biggest out flow this year.
Real Estate Stocks
All four real estate stocks rallied on above average volume, in an impressive display of rotation.
Considered the “JPMorgan of Real Estate Stocks”, Boston Properties (BXP) would be a buy on the breakout of this flat base. Look for a surge on above average volume that takes on the buy zone.
Additional Real Estate Stocks – Vornado
Vornado Real Estate (VNO), with its 8.99% yield, pays out more than U.S. Treasuries. The company surged higher on Friday June 2, and in the process cleared its 50d moving average. Volume was above average Tuesday, and Wednesday of this week, with todays volume to surging 65% above normal.
Financial stocks also participated in the rotation today, with the Financial Select Sector SPDR ETF (XLF) rising almost (1.00%).
Goldman Sachs (GS) rallied hard, adding $8.95 (+2.74%), closing near the highs of the session at 335.75.
Charles Schwab (SCHW) put in a strong performance while outperforming the Dow Jones Industrial Index, rising 1.9%. The broker dealer and wealth management giant finished its ninth straight session above its 50-day moving average. Interactive Brokers (IBKR) was added to the IBD50 as well. It closed modestly lower.
The Energy Select Sector SPDR ETF (XLE) rose (+2.65%) on Wednesday as well, rounding out the rotation for this week. Marathon Oil (MRO) was on the S&P500 “Most Actives” today, while its Relative Strength (RS) Rating jumped a few notches, rising from 67 to 73 — a welcome improvement, but still short of the 80 or higher score you prefer to see.
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