The Triple X REIT Strategy

You’ve heard of REITs, but…

If you're looking for a way to tap into the world of real estate investing without the hassles of directly owning property, then REITs (Real Estate Investment Trusts) could be the right choice for you. REITs are companies that own and manage income-generating properties such as apartments, shopping centers, office buildings, and even specialized assets like data centers and cell towers. By investing in REITs, you essentially become a fractional owner of these properties.

For aggressive traders looking to magnify their exposure to the REIT sector, leveraged ETFs like the Direxion Daily Real Estate Bull and Bear 3X Shares ETF (symbol DRN) can be utilized. The Triple X REIT Strategy offers a technical approach for trading this ETF:

  • Buy Signal: 5-day volume rises significantly above its average.

  • Sell Signal: 20-day Simple Moving Average (SMA) crosses below the 50-day SMA.

The Triple X REIT Strategy is designed for capturing explosive moves in the sector. The buy signal is generated from a 5-day volume surge. This attempt to identify periods of increased buying pressure. The sell signal occurs when the 20-day SMA crosses under the 50-day SMA. This designed to break you out of the trade when short-term momentum wanes and the longer-term trend is threatened.

A Word About the Direxion Daily Real Estate Bull Shares (symbol DRN)

The Direxion Daily Real Estate Bull Shares seek daily investment results, before fees and expenses, of 300% of the performance of the Real Estate Select Sector Index (IXRETR). There is no guarantee the funds will achieve their stated investment objective. These leveraged ETFs seek a return that is 300% of the return of their benchmark index for a single day. The funds should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day.

Index Information

The Real Estate Select Sector Index (IXRETR) is provided by S&P Dow Jones Indices (the “Index Provider”) and includes securities of companies from the following industries: real estate management and development and real estate investment trusts (“REITs”), excluding mortgage REITs. One cannot invest directly in an index.