Saturday, May 30, 2015

$VNQ - It's time to sell

Monthly Chart
  • Although $VNQ is bullish it's relative strength and upward momentum has slowed
  • $VNQ is -1.71% year-to-date vs. +3.23% for  $VOO (S&P 500)
  • 1-year performance is +10.79% vs. +12.58% for $VOO
  • Price has closed below Tenkan Sen (blue line) which represents the average of the high and low price over 9 months
  • Both Tenkan Sen and Kijun Sen (red line) are flat implying no upward momentum
  • Leading Kumo is slanted horizontally confirming flat momentum

Conclusion: Investors should sell $VNQ or at least reduce exposure and invest in a higher performing asset.

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