BALTIMORE (Stockpickr) -- Real estate investment trusts, better known as REITs, have been the place to be in 2014. While the broad market has rallied 11.5% since the start of the year, the Vanguard REIT ETF (VNQ) has rallied 25.6% over that same stretch.
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Factor in dividends, and VNQ's performance balloons to almost 29% since January.
Why all the outperformance from REITs? It all comes down to interest rates. Put simply, rates have remained lower longer than most market participants could have imagined -- and they're likely to stay that way. That means that REITs should continue to perform well as income investors seek out alternatives in 2015.
It's not just a fundamental macro story at this point; the good news is that we're seeing that bullishness in REITs play out in the charts too.
That's why we're taking a technical look at five breakout REIT trades today.
For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.
Without further ado, let's take a look at five technical setups worth trading now.
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