REIT ETF is lifting off. A ROAR Score analysis.

For free access to the ROAR Score investing system, visit ROAR.PiTrade.com

Here’s the chart of XLRE, the Real Estate (REIT) segment of the S&P 500, containing 35 of the stocks in that index. 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.

That’s a breakout from its 3 month “bottoming process” around $40, and a new high for the past 12 months. But now there’s another hurdle, as XLRE has risen to the same level it peaked at twice back in late 2024.

This is where the ROAR Score can help us frame up what’s possible, and can act as part of the research process for serious investors. By “serious” I mean those who think about playing offense and defense at the same time. Not just offense.

Here’s a screenshot from our new, free investing tool, ROAR.PiTrade.com. It is not one of those manic “buy this stock now!” systems that don’t work (and make me wonder how the carnival barkers can get away with it).

ROAR is about asking a simple question: is the next big move in this security more likely to be UP or DOWN. Note I did not say WILL be up or down. Because those same carnival barkers have used that mentality to turn investing our wealth into a casino game. No thanks.

If we look across the top of the screen, we see XLRE’s journey from a higher-risk situation about 3 month ago (red/ROAR=30 or less), progressing through average risk (yellow/ROAR 40-60) and this week to below average risk (green/ROAR=70 or higher).

There are no guarantees in investing. But this at least hints at a lower-risk chart (that’s what this is all based on, my 45 years of technical analysis, automated by PiTrade).

What to do about it? If you are a true DIY (Do-It-Yourself) investor, you will embrace the “Y” in that. And learn investing skills. Again, there’s no shortage of buy and sell recommendations out there. And they are all part of an effort to make us gamblers. I’ll save that for my entertainment days at the racetrack.

I do not own XLRE right now. And I probably won’t, outside of a trading position. Why? Because XLRE' perking up is part of a simpler trend: bond rates are looking lower. And the 10-ETF allocation portfolio I run for subscribers at ETF Yourself includes a position in GOVI, which is essentially where the XLRE is coming from.

This is a good example of how investing is more than “buy this” or “sell that.” You don’t need to spend 40 hours a week (or 70 like I have for decades) drilling down on this. Every investor finds themselves. IF they put in the effort to figure out who they are with the vast world of financial markets.

We’re here to help stoke some of that interest, and turn it into confidence. Not arrogance.