Watching this for months after seeing a big drop earlier in the year.
Showing some bearish signals, ITB has been consolidating lately, trading between narrow bollinger band limits. I honestly think the support line is above $37.49. It's very hard to tell if ITB will break the support line, it all depends on future housing data releases. I've been monitoring building permits from the U.S. census, 783,000 permits issued year to date in 2018. 1.2 million permits were issued in 2017 and has been slowly increasing since 2014. Historically, January and February tends to be a low month for building permits, which makes sense, no one's building in the winter and most of the big builders are determining their budgets for the upcoming fiscal year.
Chiakin money flow isn't showing a lot of excitement. Between February through middle of May this year, money has been flowing out of ITB. But recently, there are some inflows which suggests $37.49 might be that breakout point.
As we get closer to the end of the year, ITB could break support, might be some good short-term opportunities to hedge. Tough to tell long-term if ITB will turn around, will continue to monitor.
Showing some bearish signals, ITB has been consolidating lately, trading between narrow bollinger band limits. I honestly think the support line is above $37.49. It's very hard to tell if ITB will break the support line, it all depends on future housing data releases. I've been monitoring building permits from the U.S. census, 783,000 permits issued year to date in 2018. 1.2 million permits were issued in 2017 and has been slowly increasing since 2014. Historically, January and February tends to be a low month for building permits, which makes sense, no one's building in the winter and most of the big builders are determining their budgets for the upcoming fiscal year.
Chiakin money flow isn't showing a lot of excitement. Between February through middle of May this year, money has been flowing out of ITB. But recently, there are some inflows which suggests $37.49 might be that breakout point.
As we get closer to the end of the year, ITB could break support, might be some good short-term opportunities to hedge. Tough to tell long-term if ITB will turn around, will continue to monitor.
Some housing data just dropped, housing supply still low and causing affordability issues.
Plus lumber futures have been falling. Lumber prices had been getting more expensive since the beginning of 2016, just check out WOOD. Due to general supply/demand and also the last time the U.S. and Canada had trade negotiations on lumber had expired back in 2015. Higher lumber prices has contributed to the higher costs of building new homes, which some homebuilders have delayed due to how much their budgets can afford, which is causing this spiraling effect of home affordability issues.
I won't be surprised if ITB drops for the remainder of this year.