When I run an explorer over an collection of stocks it has a number of benchmarks that a stock has to hit before being considered a potential trade. In addition to this standard exploration I also run what I call a dirty or bare bones scan – this is a scan with minimal hurdles for price to get over before it is flagged. I run this scan simply to get a sense of what the general market is doing – since it is a simple price scan it quickly gives me an idea of how many stocks are making new highs. This to me is a good barometer of market health. Whilst running the dirty scan at the weekend I noticed an intriguing number of property trusts pop up. I am not a property trust sort of guy, in fact I am not an any sort of property person probably because my experience has always been that combining the words property and trust was somewhat amusing when one has actually had dealings with land rats (real estate agents for the uninitiated) However, I found it interesting so I ran a simple 52 week new high scan over the ASX 300 Industry Real Estate Investment Trust. This is a small industry segment comprising only 27 stocks of which 8 were generating new 52 week highs. A hit rate of 29.6% for an index is not bad.
Out of curiosity I looked at the index itself and in part was surprised to see a reasonably robust trend.
As to what it means I dont know – but everything tells you something if you just listen.