January Pending Home Sales Rise, but Real Estate ETF 'VNQ' Falls 1

In December, the National Association of Home Builders/Wells Fargo Housing Market Index hit a three-year low. However, builder confidence rebounded as the index went up to 58 in January compared to the 56 reading in December.

“The buyers and the sellers are in this dance right now where it’s a little harder to put deals together because nobody’s certain where the market is going to land,” said Glenn Kelman, CEO of Redfin in an interview on CNBC’s Power Lunch. “It’s a little bit better than it was in the fourth quarter, we’re seeing stronger buyer demand, but it’s not as if people are willing to pay any price to get a home, which is what we saw at the beginning of 2018 and for the past four years before that.”

For investors looking for continued upside in U.S. cyclical sectors over defensive sectors, the Direxion MSCI Cyclicals Over Defensives ETF (NYSEArca: RWCD) offers them the ability to benefit not only from cyclical sectors potentially performing well, but from their outperformance compared to defensive sectors.

Conversely, if investors believe that U.S. defensive sectors will outperform cyclical sectors, the Direxion MSCI Defensives Over Cyclicals ETF (NYSEArca: RWDC) provides a means to not only see defensive sectors perform well, but a way to capitalize on their outperformance compared to cyclical sectors.

For more market trends, visit ETF Trends.