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By Mike Paulenoff, www.MPTrader.com
The standout sectors this morning have been RETAIL, REITS, FINANCIALS, and HOMEBUILDERS. Huh, really? Interest rate sensitive sectors that figure to benefit in a significant way from the Fed's intension to fight for growth, not against inflation...
Let's have a look at the Dow Jones Real Estate Index ETF (AMEX: IYR). What a move in the real estate sector. No wonder, though, because the interest rate sensitive sector is reacting to a sense that the Fed will press rates continually lower to improve the profitability of the banks, which in turn will relax some of their recently imposed restrictions on lending to both residential and commercial borrowers-- or so the theory goes. From a technical perspective, all roads point to 65.00 next.
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
