SRU.UN set to churn for several weeksThe weekly chart had a notable bearish trend from March 2022 to June 2022.
This was retraced by 50% (mid-August), and then the downtrend continued.
We have broken below June's low (the year-to-date low).
I believe sellers are exhausted, but there are not many catalysts for a rally here either.
I expect TSX:SRU.UN to be mired between 26 and 27 for several weeks.
I am likely to accumulate some TSX:SRU.UN if the price dips below 26.
Reits
HOUSING MARKET BOTTOM? I think so, such a beautiful chart. I noticed Reits having their largest trades EVER in the darkpools yesterday. This is a beautiful chart of Cubesmart and look at it. Housing broke resistance from 2007 in April and has now comeback to test it in Sept-Dec all while institutations are putting out paid ads to spread the doom and gloom. Everyone and their mother is repeating the housing shock. Well if this support holds which I think it will we're in for another housing boom until we get another blowoff top. Everything here just lines up so well for a market bottom in general, I think the markets as a whole should rise for at least a couple years.
The Next Housing Crash will be Catastrophic - Prepare Now!American and international corporations are keeping a large number of properties off the market as investments. These unoccupied flats limit supply in sought locations, creating an artificial scarcity as a result of central bank policies that finally caused an Everything Bubble. The number of corporate purchases of houses has increased dramatically. This has fueled demand in market, but if rental income fall as a result of the recession, corporate purchasers will start liquidating those same assets.
As mortgage rates are rising, people are having a difficult time to allocate their income towards mortgage payments especially in times where rising food inflation is also a major problem for majority of Americans and if unemployment rates goes slightly higher then mortgage default will occur on a national scale, leading to another catastrophic housing crisis.
In one of our previous analysis we stated, how inflation will peak at 12% and in case of a recession it is certain that inflation will stay on it's trajectory to peak while, Home prices will start correcting.
Demand and Supply comparison between U.S Population growth and overall Nonfarm payroll employees against total housing unit supply
Listing count of houses actively on sale have increased significantly in June by 18.74%
According to the MBA's Refinance Mortgage Applications Index, applications for mortgages refinance fell 5.7% in June and have fallen by 70% year on year to the lowest level since 2000.
PPI for Construction material have increased by almost 50% since 2021, forcing builders to shrink margins by 10-12%
Conclusion: Since owning a home is becoming increasingly costly, it is prudent to rent one because real estate prices will soon begin to correct.
NOTE: Cost of Farmland which have adequate water supply will continue rising due to current geopolitical situation.
To leave this analysis on a positive note, We have picked an undervalued stock for you,
Unity Software Inc. (NYSE:U) Looking at the future, their is one aggressive company that should be in every tech growth investor's portfolio which have the potential to outpace market, Unity Game engine can render ultra-realistic graphics, The next decade will of The uncanny valley and unity software plays a major role in it, Unity software are down 70% this year and trading 40% below their IPO value, The stock is currently at discount and from a long-term prospective and we believe that it will provide 80% return within 24 months making it a best buying opportunity.
To this wonderful community,
Be safe and be prepared,
Thank you. ❤️
MapleTree Industrial Trust REITS - longWeekly descending wedge - If it breaks out of the descending wedge, we can see a strong push to the upside.
MapleTree Industrial Trust (MIT) owns data centre assets in North America and Singapore. Data centres have been gaining prominence and MIT has been pursuing more growth by leveraging on acquisition of data centres.
The total addressable market size of data centre in Singapore alone, in terms of spending opportunity, is expected to increase at a compound annual growth rate (CAGR) of 6.1% between 2020 and 2025. Thus there is more potential for growth for MIT. I believe this is a long term hold, and dividend yield is 4.46%, which is not bad at all.
Gross revenue has been consistently increasing for past 5 years (average 7.07% for year 2017 to 2021).
Assets has also been on an uptrend since 2017. Total valuation of the 115 properties held by MIT is S$6,762m, and 41% of those at data centre.
Occupancy has also increased from 90.9% to 92.6% overall from 2020 to 2021.
Tenancy are also diversified across different trade sectors such as manufacturing, retail trade, financial and information & communications.
Long term PT is 3, then 3.3.
I think a great area for buying would be 2.4 range.
However, it is in a weekly descending wedge. If it does breakout strongly, I will look to buy in on retest of breakout area.
Real Estate Assets Could Fall 30% or more - are you preparedThe excesses of the past 8+ years have driven RE prices to very high levels. Simple price channels and Standard Deviation channels suggest the unwinding of this bubble may see Real Estate price levels collapse -25% to -30% or more over the next 12+ months.
The US Fed, in an effort to combat inflation, will likely raise rates again - pushing sellers even further into an effort to DUMP assets before buyers are able to react to the shifting market climate.
My interpretation of what is happening is consumers are pulling away from making big purchases as global assets bubbles are unwinding. The US asset bubbles have just started this process - unlike China and other areas. I see the Fed bursting another RE bubble and sending price levels far lower.
Get ready, the fun is just starting (again).
Long Residential REITs through $EQRThis residential reit has a good divi and is at a solid level of support for an investment. it's gone sour lately cause it holds lots of places in big cities that people are moving from like LA NYC SF but i don't buy that shit those places will be overcrowded and have plenty of renters for decades to come
PSA Bubble popped The chart posted is just one of so many that has been used to take money from weak hands to back to strong hands that should be at least a drop of 65 to 75 % well before any one can stick their head out of the foxhole . I say foxhole because there has been a war going on for decades the rich vs the workers . Btw the way there has been little to no bottoms thru out history worth buying until the Unemployment rate has been up over 6 % plus see us data since 1942
One Way to Hedge Inflation: REITsOne way to hedge a high inflation rate is to invest in REITs. Dividends can help offset some of your higher costs. This is touted all over at this time, but don't throw darts at random REITs. And to be honest, chances are your small fund manager could probably use your guidance if you're well-educated on the markets.
The same due diligence is required for any investment even if you are only investing for the dividends. The share price doesn't matter as much as the company's Income, but good Income for high dividends comes from a strongly managed company, as always. This is important because you'll hold the position for a while.
Start with the technical analysis to pick the REITs you'll research further. We do this at TechniTrader by starting with our scans, which look for improvement in the trend and also our large-lot indicator set.
Example: NVST came up on TechniTrader scans today because it's attempting a bottom at a previous buy zone which is at the lows of a long-term trading range and it has improving indicators, technical and fundamental. All good there to start more fundamental analysis, but solid risk analysis requires confirmation of that bottom fully developing before taking action.
Next, we check the TechniTrader fundamentals, which focus on how strong the institutional holdings AND holders are, the most important financial metrics and more.
If all is good there, then we put the stock on a watchlist to wait for the chart patterns to set up for the best entry and risk to profit profile.
For all investing and trading, a step-by-step plan for confirming when execution takes place once you've done the work to pick the best opportunities is the difference between the retail crowd and the professionals who make a living in the markets.
Happy TechniTrading!
Please Like and Follow if you're going, "Right? Why didn't I think of that?!" There's more where that came from at my website.
4/10/22 ORealty Income Corporation ( NYSE:O )
Sector: Finance (Real Estate Investment Trusts)
Market Capitalization: 43.145B
Current Price: $72.16
Breakout price (hold above): $72.45
Buy Zone (Top/Bottom Range): $70.90-$69.20
Price Target: $76.80-$77.90
Estimated Duration to Target: 76-80d
Contract of Interest: $O 6/17/22 72.5c
Trade price as of publish date: $2.15/contract
REITs looking bearish across the sector. H&S setups galoreFirst noticed this when I was scouting $ABR as a potential candidate for puts. I was looking for H&S setups, and liked the look of it. If you look at $ABR chart (daily or weekly) I imagine you'll see what I mean. Looks like we're peeling off the 20MA on the 1D to the downside. (Earnings are tomorrow, as a heads up)
But yes, this led me to look at other names in the sector to try and add to my overall conviction. And I found that while some have already made their move to the downside - I also found a bunch of tickers that seem like they're on the cusp of breaking down
Apart from $ABR the other names I'm looking at for moves toward downside in the sector are $O and $UDR . $O especially. In terms of more of a 'macro' view this year I think with increasing interest rates, inflation through the roof etc. I think real estate sector is going to feel some notable pain this year. But of course, theories only mean so much, let's just focus on the chart setups as/when they come. For now, the sector looks bearish
The options I'm personally trading currently are: $ABR Mar 18th '22 $17.5p (cost basis 2.51) and $O Mar 18th '22 $67.5p (cost basis 2.05)
Posting this moreso to draw attention to the sector in general, rather than my exact personal plays necessarily. Hence using $SCHH as the image for this 'idea' so people can see the sector overall. Note the rejection/inability to breach the 20MA on the weekly. I think this thing could sag and fold over.
Hope this is helpful to some! And as always, please let me know your thoughts/comments if you have any! I'm always open to new ideas, viewpoints and constructive criticism etc.
PINE: Short (signaled by 3 indicators)Alpine Income Property Trust, Inc. is a real estate company, which owns and operates a portfolio of single-tenant commercial properties. The company was founded on August 19, 2019 and is headquartered in Daytona Beach, FL.
Recent News (nontechnical analysis):
Dec2: Alpin Sells $24.5 Million towers;
Dec 3: Falling asset prices
Moving Average, MACD, and RSI indicate resistance has been reached a price decrease + volume decrease is on the way in the coming days.
OHI (Tentative Buy)Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities. Its portfolio consists of long-term leases and mortgage agreements. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.
OHI has been in a selling trend for the last two quarters of 2021, and appears to be heading toward a price breakout of the current resistance.
Why? 3 Potential Indicators:
1) A bullish wedge is forming on the long-term daily chart.
2) RSI has crossed 50, is moving toward the upside
3) Candles in the last few days are trading above the Bollinger Bands, signaling price breakout to higher high and higher low in the coming weeks.
Entrance Strategy: When price breaks a current resistance level.
Exit Strategy: Take profits at new ATH or after 10% increase.
CTRE (BUY) - Entrance + Exit StrategyCTRE is a REIT focused on adult care facilities.
Overview beyond the technical analysis:
In the past, CTRE it has been recommended by highly experienced real estate attorneys as a long-term REIT for holding/dividends.
Given the aging boomer population and focus on healthcare amidst the pandemic, this REIT stands out from others.
Technical Analysis:
CTRE is approaching a golden cross in the coming week. Even if history does not repeat, it often rhymes.
2 of the 3 previous golden crosses for CTRE have resulted in 60% increase over the period of several months.
At the current price point, CTRE may be able to expect new ATHs in 2022.
ALX - Rising Revenue is Not Enough Alexander's, Inc. operates as a real estate investment trust. The firm engages in leasing, managing, developing, and redeveloping its properties. Its operating properties are located in the greater New York City metropolitan area. The company was founded on May 16, 1955, and is headquartered in Paramus, NJ.
Despite some nontechnical indicators (i.e rising revenue & location), ALX seems positioned to continue losing value.
Fibonacci retracement from the previous All-Time High (ATH) is in a "red" zone, the lowest level of support in the trend. This could indicate "nowhere to go but up." So I decided to test that hypothesis with two indicators: 1) RSI and 2) Bollinger Bands. Both indicators insinuate an imminent downward price trend.
Entry: After support level at the time of publishing is broken.
Exit: After 5% -10% drop in price
Stor entry point. I'm still pretty new at all of this, but STOR is a recommendation from High Yield Landlord, has an Equity Summary Score of Bullish Rating of 7.7 PROVIDED BY STARMINE FROM REFINITIV.
It looks like it has come off of resistance and is traveling mostly along the low-end of the channel. If this holds, it looks like it could meet or exceed $41.87, or approximately a 20% bump in the near term. If it breaks, below, I'll be doubling down.
I picked up 200 shares at 34.05
Let's see where this goes.
Thanks for stopping by. Good fortune to all!
REITs could lead the next upswing, $PSB is showing itAfter NYSE:PSB topped in mid-April has been forming a long base. I see a "low cheat" with a breakout above $168.88 with a good follow through above $165 resistance zone. Today is making that second breakout and could be a good day to get in the stock. I'll be waiting for volume confirmation.
NYSE:PSB has a IBD relative strength rating of 77. Is not the minimum 80 that I like to see, but still the chart is looking very good. Another stock in the same industry that is going for the breakout is NYSE:WY . Is currently trading at $38 and the pivot buy zone is at $42.
The only thing that I don't like is that AMEX:PW , which has the #1 rank in the industry by IBD, already made the breakout from its base and last week made a hard throwback. If this industry leader doesn't holds above $49 could be a bad sign for the rest.
RE - Real Estate Double Top Before FOMCIdea for Real Estate:
- Real Estate testing a double top after some exhaustion Sept-Oct.
- MBB's rolling over, rejected at -1 Std Dev:
- Because every other market component is already at +2/-2 Std Dev, and Real Estate is relatively less volatile than say S&P 500, I think the +1/-1 Std Dev is a good signal.
- We will have more confirmation next week depending on Fed's decision to taper MBS purchases. I think the Fed will stick to their signaled schedule in hopes of avoiding any sort of a "tantrum".
- Historically, RE and MBS's lead declines in equities.
- We have seen both commodity prices, Building Permits and pending Home Sales come down, so a decline is natural:
- Overseas property market declining is likely to have headwinds as well:
GLHF
- DPT
Property versus equities in Australian marketsThere is a lot of talk about housing prices here in Australia at the moment and the affordability for new entrants to the market.
It is always a trade off between investing in property and investing in equities or other asset classes. There are benefits to owning both property and stock.
This graph is a ratio of the market capitalization of two ETFs, one in property, and one tracking ASX 200 equities.
If the graph is going up, then that indicates that property is currently outpacing the ASX 200, and vice versa for going down.
SGX/Stock: Keppel DC REIT, Are We There Yet?Analysis Forecast:
Potential Support Level
Analysis is for:
SG Market
Position Trading
Income Portfolio
Supporting Technical Observations:
1. Price resting near Fibo 50% Retracement
2. Fund Flow Index (FFI), positive divergence
Forecast:
Currently, expecting Short term rebound towards S$2.65 resistance area. If accumulation trading range is formed, we will see a potential upward reversal.
Trading below S$2.40 will falsify above analysis.