well who’d a thunk it but SPG finally made a solid breakdown of that sub-channel uptrend line that i’ve been highlighting and the surprising part is that it did it on a day when nearly all sectors are doing well. the selling seems to be news driven as this bloated pig of a REIT (a REIT with a 40 p/e ratio and yield of only 2.5%) decided to dilute the value of it’s shares even more by selling another 7 million of it’s shares in a secondary offering and offering $1.5 billion in unsecured notes. today’s news in no way invalidates the technical breakdown today so i would expect, unless the market somehow manages to continue to rally into and throughout next week, that the SRS trade will start to accelerate to the upside from here. again, a lot depends on the broad market as although SPG is the largest component of the IYR/SRS at just under 9%, we still need the other 91% of commercial REIT stocks to start breaking down in order for the SRS trade to play out. i will try to take a look at some of the individual charts for the other top holdings in the commercial RE sector today to see how the rest of the big players in the sector look.
