What to Trade Today: Volatility in REITs and Energy as Funds Flow In

The U.S. premarket is shaping up to be a mixed bag, with key index futures pointing to a cautious tone as investors weigh recent economic data and sector-specific volatility. The S&P 500 and Nasdaq futures are in the red, reflecting a risk-off mood among traders, especially after a sharp selloff in tech and small-cap names overnight. Meanwhile, the Dow Jones future is trading slightly lower, with industrial and financials dragging the blue-chip average.

On the commodity front, crude oil is bucking the trend with a 1.5% gain, breaking through the $56.80 mark, signaling renewed optimism in the energy sector. Gold is under pressure, down 0.6%, as investors seem to be rotating out of traditional safe-havens. Copper and silver also declined, albeit modestly, with copper falling 0.13% and silver plummeting 2.75%. This divergence suggests that while energy is gaining traction, the broader market remains in a wait-and-see mode.

For active traders, the diagonal provides five actionable ideas—each with distinct risk profiles and catalysts. Let’s break them down.

1. Elme Communities (ELME), Short Term Trading Opportunity: Avoid ELME is flashing red on most fronts. Its technical score of 3.00 is weak, with two bearish indicators dominating the chart. Volatility is high, and the price is struggling to find a clear direction. Fundamentals aren’t helping either—its 2.49 score reflects poor gross profit margins and weak liquidity. But here’s the twist: fund flows are strong, at 7.72, with big extra-large inflows suggesting smart money is buying the dip. That said, the fundamentals are a red flag. Analysts remain neutral, and the stock is expected to fall another 0.29%. Recent REIT news hints at sector-wide growth, but not for ELME. Takeaway: This is a high-risk trade if you're chasing fund flows. But with bearish signals everywhere, it's best to sit this one out.

2. Schlumberger (SLB.N), Short Term Trading Opportunity: Consider SLB is in a tight box. Its technical score of 4.00 shows mixed signals—two bullish, one bearish. Volatility is high but not yet a breakout. Fund flows are decent, at 7.7, with small money coming in, suggesting retail interest. On the fundamentals, SLB is a standout with an 8.01 score—solid PE and ROA metrics. Analysts are split, but the overall sentiment is bullish, and the stock is up 10.92%. Recent news about Trump-era energy policy and geothermal permitting could be a tailwind. Takeaway: SLB is a short-term play with strong fundamentals and positive analyst coverage. But the mixed technicals mean you should watch for breakouts.

3. Dorian LPG (LPG), Short Term Trading Opportunity: Avoid LPG is in a bearish camp with a technical score of 2.00 and four negative indicators. The chart is showing signs of exhaustion—Marubozu White and RSI Overbought are bear traps. Fundamentals are 5.3—mixed at best. But here’s the catch: fund flows are strong, at 7.83, with inflows coming in. The price is up 16.64%, but that might be a last gasp. Analysts are cautiously optimistic but still bearish in the long run. Recent news about OPEC+ and Nigerian energy policy may help the sector, but not the stock. Takeaway: LPG looks like a short-term short with a risk of a false rally. But the fundamentals aren’t solid enough to justify a long.

4. Brookdale Senior Living (BKD), Short Term Trading Opportunity: Watch

BKD is in a tight race. Its technical score of 5.00 suggests neutrality, with one bullish, one neutral, and one bearish signal. Volatility is rising. Fund flows are strong, at 7.85, with big block inflows, which is a good sign. Fundamentals, however, are weak, scoring 2.04. Analysts are bullish, with one strong buy, but history is bearish. The stock is up 2.37%, but the sector is still under pressure. Recent news on HHS and health protocols could help, but not directly. Takeaway: BKD is a mixed bag. The inflows are good, but the fundamentals are shaky. A short-term trade with tight stops is a possibility, but watch for a breakdown.

5. Materion (MTRN), Short Term Trading Opportunity: Consider MTRN is in a technical no-man’s-land, with a 5.00 score and one bullish, two bearish indicators. Fund flows are 7.87—good but trending negative. Fundamentals are strong, at 8.3, with good liquidity but weak turnover. Analysts are optimistic, and the stock is up 2.69%. The big news is Trump’s tariff announcement—doubling on steel and aluminum—which could be a short-term catalyst. Takeaway: MTRN is a classic trade—good fundamentals, mixed technicals, and a strong catalyst. A short-term play with a clear risk/reward profile.

As the bell approaches, watch how MTRN and SLB set the tone for today’s session. Both have strong catalysts and decent setups. But keep an eye on the broader market—volatility is still high, and a shift in sentiment could turn this into a fast-moving session.