Via mymoneylife.blogspot.com/:
My Stock of the Day is actually an ETF, the iShares Real Estate fund (IYR).
With all the talk about whether the housing market has bottomed or not, I thought it was telling that the IYR is breaking below its 200-day average currently.
Actually, the IYR is a basket of many of the largest publicly traded REITs, and has exposure to the commercial real estate market, apartments, hotels, etc.
The stock has been bouncing around support between 84-86, but in the last few days it has broken below that support, and on increasing volume. In fact, a look at the chart shows that all of the high volume days this year have come on down days. Not a good trend.
The stock is oversold now, so it should bounce. But I think that the 84 level will act as resistance now. As such, it looks like this ETF is headed for more of a correction. And that likely means that any talk of a bottom in the real estate market is premature.
$80.98 (05/19/07)
