SPG

kalimn- SPG has been an enigma to me lately.  look at how it continues to power to new highs as the IYR and DJR (DJUSRE) is lagging way off it’s highs.  from a fundamental perspective, SPG is a REIT selling at 43 time earnings and a yield of only 2.5%???  my best guess is that the ZIRP (zero interest rate policy) of the fed has forced yield-chasers into it just like they have with all other high yeilding dividend stocks and bond classes.  when we finally start to see rates moving higher, the rush for the exits won’t be pretty in these high-yeilding “safe havens” (using the word “safe” very, very liberally).

fwiw-  i don’t this the risk to an SPG short is that high.  it’s not like it’s going to gap up 15% in a day on you.  conventional wisdom says to go long a stock making new all-time highs but this one definitely has red flags on the recent break-out to new highs.  so maybe you short it here with a 8%+/- stop loss? although the odds would be much better if you waited to see if today’s index triangle breakouts fail in the next week or so. daily and weekly charts with notes below. g-luck.