I agree, it is difficult to track the MA on SRS, look at IYR and RWR to get a better idea of where the average is. I have seen this so many times, where the REIT's rally for a few days/weeks then just go right in the opposite direction just as fast as they climbed. Can someone please explain this rally today? I am totaly puzzled as to why the market is not reacting to the inflation or the consumer confidence numbers. You cant tell me that they expected the PPI to be 1% core .4% or the CC to come in at 75. with oil at 101 a barrel, inflation taking off, growth slowing, housing prices droping like never before seen on record, and yet the market thinks that this is somehow a bottom. I guess the same thing happned when the Nasdaq was on its downward spiral. I was on the other side then, buying on the dips. i lost everything I had in 2000-2002. I made all of it back 10 fold in this ridiculous real estate bubble and am making more shorting the market now. I cant wait to go long again though. Then I dont have to watch the market every day.
The market makes no sense. I suppose if it did, we all would be rich. The only friends we have are diversification & time.
As long as all your eggs are not in one basket and you can wait things out then you should be fine. The moment time comes into the equation (i.e. options) then you are required to time the markets, which in turn means you must understand the markets to such an extent that its movements are logical and understandable.
Since that is an impossibility, I say pick stocks (good companies) or plays such as SRS which are more sector plays, be careful on your entry points, diversify etc and you should be fine.
Thanks for the info. I think your right. Sometimes the markets make no sense. I do actually have all of my eggs in one basket though. I am 100% in SRS right now. I know that many would consider that nuts, but I am still young and am very tollerant to risk. I sometimes make or lose 2-3 months salary in 1 day. It can be nerve racking, but I see this REIT decline as a huge opportunity.
I think the news was already seen by the instutions that you and I are finally now seeing in the new back in Januray, thats why January was so bad. Its not a level playing field, they get the info before we do.
As for why we are rising now is anybody's guess. All I know is that financials are no longer leading like they did off the Janurary lows, they are now lagging and commodities are now leading.
So ... I'm following the NYSE, oil and gold.
When they top then I bet the REITs will get crushed.