MENU
Go to the list of all blogs
Vitalii Liubimov's Avatar
published in Blogs
Feb 09, 2021

Bearish Signals Generated on 3 Real Estate ETFs

Interest rates in the U.S. have been rising over the last six months, not the Fed Funds rates that the Federal Reserve controls, but the 10-year and 30-year Treasuries. If we look at a daily chart for the 10-year treasury yield, it has jumped from 0.504% last August to a recent high of 1.193%.

The trek higher has been steady and consistent. If this was a stock chart I was looking at, I would be looking to buy it the next time it cycled lower a little. You can see the trend line that connects the lows back to last August. It’s currently sitting right around 1.0%.

If you looked at the title of this article, you might be wondering what rising interest rates on treasuries have to do with real estate ETFs. The connection is that when the rates on less risky treasuries rise, other income generating investments become less appealing.

Like we see when bonds become less attractive, the price has to fall by enough to make the yield attractive again. This could be what the bearish signals are suggesting about the real estate ETFs—that the yield isn’t as attractive now because treasury yields have been rising.

Regardless of the reasoning, the three most actively traded real estate ETFs all generated bearish signals on February 5. Those signals came from the Tickeron A.I. trend prediction tool. The three ETFs are the iShares US Real Estate ETF (IYR), Vanguard Real Estate ETF (VNQ), and Real Estate Select Sector SPDR (XLRE).

The bearish signals call for a decline of at least 4% over the next month, but there is a pretty significant difference in the confidence level between the three signals. The signal for the XLRE is 76% while the confidence levels on the other two are both at 54%.

Because these are ETFs, we don’t have the traditional fundamental indicators that we can break down, but the technical indicators are the same as with an individual stock. In the case of these three funds, they all three have seen bearish signals come from the RSI Indicator, the Aroon Indicator, and the Bollinger Bands indicator. It is also worth noting that all three are in overbought territory based on the daily stochastic indicators.

Looking back at the chart of the 10-year Treasury yield, it looks like it is ready for a short cycle lower at this time, so we could see the ETFs and the treasury yield move lower together.

The complete analysis and comparison of the three funds appears below. The information from Tickeron shows how the funds compare to one another as well as other ETFs and stocks.

 

Related Ticker: XLRE

XLRE's RSI Indicator ascending out of oversold territory

The RSI Indicator for XLRE moved out of oversold territory on January 13, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 26 similar instances when the indicator left oversold territory. In of the 26 cases the stock moved higher. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on February 05, 2025. You may want to consider a long position or call options on XLRE as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for XLRE just turned positive on January 15, 2025. Looking at past instances where XLRE's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .

XLRE moved above its 50-day moving average on February 05, 2025 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for XLRE crossed bullishly above the 50-day moving average on February 10, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLRE advanced for three days, in of 335 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 302 cases where XLRE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLRE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

XLRE broke above its upper Bollinger Band on January 21, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Notable companies

The most notable companies in this group are PROLOGIS (NYSE:PLD), American Tower Corp (NYSE:AMT), Simon Property Group (NYSE:SPG).

Industry description

The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Real Estate Select Sector Index (the "index"). Under normal market conditions, the fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes companies that have been identified as Real Estate companies by the Global Industry Classification Standard (GICS®). The fund is non-diversified.

Market Cap

The average market capitalization across the The Real Estate Select Sector SPDR® ETF is 32.77B. The market cap for tickers in the group ranges from 8.36B to 120.46B. PLD holds the highest valuation in this group at 120.46B. The lowest valued company is FRT at 8.36B.

High and low price notable news

The average weekly price growth across all stocks in the The Real Estate Select Sector SPDR® ETF was 0%. For the same ETF, the average monthly price growth was 5%, and the average quarterly price growth was 2%. VTR experienced the highest price growth at 10%, while IRM experienced the biggest fall at -10%.

Volume

The average weekly volume growth across all stocks in the The Real Estate Select Sector SPDR® ETF was 1%. For the same stocks of the ETF, the average monthly volume growth was -8% and the average quarterly volume growth was 12%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 80
P/E Growth Rating: 42
Price Growth Rating: 45
SMR Rating: 71
Profit Risk Rating: 65
Seasonality Score: -42 (-100 ... +100)
View a ticker or compare two or three
XLRE
Daily Signalchanged days ago
Gain/Loss if bought
Show more...
Ad is loading...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

Category RealEstate

Profile
Fundamentals
Details
Category
Real Estate
Address
One Lincoln Street Cph0326Boston
Phone
N/A
Web
www.spdrs.com
Ad is loading...
U.S. stocks took a hit as tech shares dropped and the yen strengthened, leading to a 1,033-point drop in the Dow. With growing concerns over the Fed's rate policy, analysts now predict multiple rate cuts to address rising economic risks.
The technology sector remains a dynamic space for investors, with certain themes like portable devices showing substantial growth potential. Over the past week, the portable devices theme has seen an impressive performance with a +14.86% increase, highlighting the strength and resilience of companies operating within this sector. In this article, we will explore key metrics such as market capitalization, price trends, and volume growth, while also taking a closer look at the individual performances of companies within this theme, particularly focusing on Apple Inc. (AAPL), CEVA Inc. (CEVA), and Generac Holdings Inc. (GNRC).
The performance of companies in the fish-selling category has attracted significant attention recently, primarily due to the group's impressive +19.69% increase in performance over the past week. The 'fish' category, which includes companies that sell or produce fish, often overlaps with firms involved in poultry, frozen meat, and dairy products. Notable companies in this sector include Lifeway Foods, Inc. (LWAY), Sanderson Farms, Inc., and Hormel Foods Corp. (HRL). In this article, we will explore the market dynamics, price movements, and volume changes affecting this sector, with a focus on the group of tickers HRL, LWAY, BRFS, and PPC.
Two standout models are at the core of Tickeron's new bots (robots). Identifying and acting on price drops ("search for dips") and leveraging significant volatility spikes.
Tickeron has introduced advanced AI trading bots designed for day traders, utilizing Financial Learning Models (FLMs) and technical analysis to optimize strategies in high-volatility markets. These bots are engineered to capitalize on price surges and provide precise, short-term trading opportunities.
The railroads sector has recently demonstrated impressive performance, with a notable +19.69% increase in performance over the past week. This surge underlines the sector's critical role in freight and passenger transportation across North America, providing essential infrastructure for both national and international trade logistics. This article delves into the sector's key players, their market performance, and recent trends that are shaping the future of rail transport.
The uranium sector has been gaining notable attention recently, with a sharp uptick in performance. As of last week, uranium companies have seen a significant increase in performance by +10.69%. This surge brings renewed focus to uranium, a critical element used in nuclear power generation. With nuclear energy gaining traction as a cleaner alternative, companies engaged in uranium acquisition, exploration, and development are well-positioned to capitalize on this demand.
Amazon (AMZN) saw a $54B market cap increase this week, driven by a 2.74% stock price surge. Despite the short-term volatility indicated by breaking its upper Bollinger Band, the company's strong positioning in AI and cloud computing continues to attract investor interest.
The financial markets saw a mix of gains and declining volatility between September 23-27, with key indexes like SPY, QQQ, and DIA posting positive returns. Despite rising stocks, volatility measures dropped, reflecting reduced market uncertainty. This article explores market trends and highlights AI-driven trading robots designed to capitalize on opportunities while managing risk.
Tickeron's AI-powered Trend Trading bots are revolutionizing stock investing by integrating Financial Learning Models (FLMs) to help hedge fund managers and traders uncover undervalued stocks. These bots provide actionable signals, apply advanced risk management strategies, and support disciplined growth, empowering investors to navigate complex financial markets with ease.
The aluminum construction companies have experienced a significant boost, with the segment seeing a +11.13% increase in performance over the past week. This growth is largely driven by the rising demand for lightweight materials, particularly in the automotive sector, where aluminum is being widely adopted to improve fuel efficiency. The aluminum industry plays a vital role in the U.S. economy, generating approximately $71 billion annually in direct economic impact, according to The Aluminum Association.
Unlock the potential of AI-powered swing trading with robots designed to track dips in top S&P 500 stocks. Whether you're a beginner or experienced trader, these tools help manage up to $20k per position, balancing risk and reward with advanced algorithms and market insights. Discover how to maximize returns in volatile markets!
Discover Tickeron's new AI-driven trading bots designed for high-volatility markets and impulse price action. Leveraging Financial Learning Models (FLMs) and technical analysis, these bots optimize trades, offer a 70% win rate, and execute strategies for day traders focused on fast market moves.
The Diesel Companies segment has displayed a notable increase of +9.44% in performance over the past week. This uptick highlights a positive trend in the sector, encompassing companies involved in the manufacturing of diesel vehicles and the distribution of transportation fuels.
Tickeron launches AI-powered Stock Picker robots to assist hedge fund managers with sector rotation, growth-focused small-cap stocks, and strategic risk management. Using proprietary FLMs, Stock Pickers offer quant-driven signals and adaptive strategies for long-term growth and investment
Tickeron unveils an intuitive AI trading bot interface, offering tailored strategies for day, swing, and trend traders. From beginners to pros, discover tools designed to optimize trading precision, adapt to market volatility, and provide hedge fund-level insights for smarter investments.