Healthcare REITS - Take Your Time

Written by MrStockFox. Posted in Trade Ideas

One sector that I am really wanting to add back to is the Healthcare REIT sector.  Most of the companies have been consistently raising dividends 3-8% and have yields from 4.5%-7%.  As you can see in the chart above, the MoneyFlow has continued down on the recent rise in price. A clear sign that its distribution and not accumulation.  An example of something very similar happened back in Feb, 2016. At the very least VTR should hit the lower 58 level although I expect something more like 55-57.  Also note that the moving averages are starting to point down and its just a matter of time before they give a negative cross.

Companies I am looking to add to: VTR, HCN, OHI and possibly HCP

My advice, is to be patient and wait for a further correction.  One could also wait for a postive cross of the moving averages which is probably 3-6 weeks away.

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