The State Street Real Estate Select Sector SPDR ETF (XLRE) is breaking out from its three-month “bottoming process” around $40 – and setting a new high for the past 12 months, notes Robert Isbitts, founder of Sungarden Investment Publishing.
Here is the chart of XLRE, the Real Estate Investment Trust (REIT) segment of the S&P 500 Index (^SPX). REITs are sort of a “hybrid” stock investment, since they yield more than the S&P 500, and can sometimes be viewed as proxies for owning bonds. Recent activity leads me to believe that may be happening again.
But there is a hurdle, as XLRE has risen to the same level it peaked at twice back in late 2024. This is where my “ROAR Score” can help frame up what’s possible. ROAR is about asking a simple question: is the next big move in this security more likely to be UP or DOWN.
If we look at it, we see XLRE’s journey from a higher-risk situation about three months ago…to average risk…to below average risk this week. There are no guarantees in investing. But this at least hints at a lower-risk chart.
