It has only been a week or so since I recommended Health Care Properties (HCP).
After four days of relentless selling the stock has now completely reversed the TradeRadar BUY signal and plunged back into the SELL zone. Uncertainty in the credit markets and non-stop bad news from the real estate sector is wreaking more havoc on real estate stocks of all kinds.
Still, the fundamentals of this REIT remain attractive. Indeed, the yield has even improved and is up around 6% now.
Technically speaking, though, the charts tell a grim story. My strategy is to try to buy AFTER a bottom has been established. Unfortunately, it looks like HCP threw me a real head fake and has further to fall.
We will keep an eye on it and be prepared for when it does begin to turn around.
After four days of relentless selling the stock has now completely reversed the TradeRadar BUY signal and plunged back into the SELL zone. Uncertainty in the credit markets and non-stop bad news from the real estate sector is wreaking more havoc on real estate stocks of all kinds.
Still, the fundamentals of this REIT remain attractive. Indeed, the yield has even improved and is up around 6% now.
Technically speaking, though, the charts tell a grim story. My strategy is to try to buy AFTER a bottom has been established. Unfortunately, it looks like HCP threw me a real head fake and has further to fall.
We will keep an eye on it and be prepared for when it does begin to turn around.
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