{"id":21207,"date":"2023-09-13T07:30:26","date_gmt":"2023-09-13T11:30:26","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21207"},"modified":"2023-09-13T07:30:26","modified_gmt":"2023-09-13T11:30:26","slug":"why-real-estate-is-struggling","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/why-real-estate-is-struggling\/","title":{"rendered":"Why Real Estate is Struggling"},"content":{"rendered":"

Andrew’s Note: <\/strong>Jeff Clark’s invested $2.4 million since last October to prepare his subscribers for a 1929-type crash. And this Friday, he’s hosting a brand-new livestream for the most dedicated traders. To learn more, click right here<\/a>.<\/p>\n

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Knowing what not to trade<\/em> is often more important than knowing what you do want to trade.<\/p>\n

That’s because the number one priority for every trader should be capital preservation.<\/p>\n

If you run out of money, you won’t be able to keep trading. It’s an expensive lesson that every seasoned trader has learned the hard way.<\/p>\n

That’s why today, we’re going to look at real estate, a sector that’s been struggling for nearly two years. The SPDR Real Estate Select Sector ETF (XLRE) has been in trouble since December 2021.<\/p>\n

Let’s look at a chart of XLRE below. We’ll walk through what I see on the chart and why it’s likely best for most traders to avoid this sector for the time being.<\/p>\n

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\"Image\"<\/p>\n

Since December 2021, the trend in XLRE is clearly to the downside.<\/p>\n

The simplest definition of a trend is a series of swing points moving together in one direction. A downtrend must have a series of lower lows and lower highs.<\/p>\n

You can see the swing points marked on the chart courtesy of the red arrows.<\/p>\n

But even the fiercest of trends has to take a breather every now and then. Think of it like this – if a sprinter runs 100 meters as fast as they can, they’ll need a break before they can race again.<\/p>\n

It’s the same with markets. After a market has a strong directional move, there will always be some kind of pullback.<\/p>\n

These pullbacks come in all kinds of shapes and sizes. And right now, XLRE is tracing out a triangle pattern. Triangles are typically trend continuation patterns. Just like any other pullback, they’re a temporary interruption of the larger trend.<\/p>\n

Once a triangle pattern is completed, it will break out in the direction of the larger trend.<\/p>\n

In this case, traders should be on the lookout for a break below the supporting line of the triangle. That’s the first clue that XLRE is ready to resume its downwards slide.<\/p>\n

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Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

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Now I’m not necessarily suggesting you should rush in and play the downside. That’s definitely an appropriate strategy for some traders, but it just might not be suitable for others.<\/p>\n

Just because my analysis tells me that something is going to break down doesn’t mean I have to play the short side. Sometimes, it makes more sense to simply avoid that market until it finds support and starts a new trend that will take the market higher.<\/p>\n

Remember, analysis is simply a mastery of observation. It’s all about reading price charts and market sentiment. Trading, on the other hand, requires a mastery of the self. You have to know what kind of trader you are.<\/p>\n

If you’re aggressive and happy to play either the long or short side, then this is might be a great trade setup. If you’re more risk averse, then it might make sense to avoid the real estate sector for now.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams<\/p>\n

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READER MAILBAG<\/h2>\n<\/div>\n

How are you planning to play the real estate sector?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Knowing what not to trade is often more important than knowing what you do want to trade. <\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21207","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21207"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21207\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21207"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21207"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21207"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21207"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}