Restaurants and REITs Still Strong

10/22/2010 10:27 am EST

Focus: STOCKS

Thomas Aspray

, Professional Trader & Analyst

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On September 13, I discussed the bullish action in both restaurant stocks and REITs. Both have moved above the April highs and are up over 4% since that day. The S&P Restaurants chart shows a breakout last month, and the group has since moved to new all-time highs. This group and stocks in general are overextended, making a pullback likely. The charts of many of the individual REITs look very strong as some have overcome long-term resistance. The group shows good relative strength (RS) versus the S&P 500, and many REITs have attractive yields as well.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

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