The home builders sector has a very nice correction I would be LONG calls in the sector NOW this is the last wave up use it also to sell into a new high all long term holdings as I will discuss near the 5th wave top
A giant wedge coming into play.
-6 deg trendline on top, 15 deg trendline (1+5=6... as above so below) on the bottom.
Harmonic shows double Giza (52) to binary YES handoff (11) with a pullback to Giza ($52) at 8/22 (128 inverse Giza)
Watching the interaction with the upper trendline for final confirmation of rally strength.
Inflation + Interest Rates + Job Loss...
The ETF for home builders went parabolic last week, mostly because of an earnings blow-out from DR Horton (DHI). This chart is one to watch to see how dangerous parabolic moves can be. ITB faded intraday after stretching well above its upper Bollinger Band (BB). The BBs define an expected price range. So when price goes well above the upper-BB, the stock, ITB in...
ITB is a US Home Construction ETF. Like many US equities, it's been struggling since December 2021. On the daily chart shown, price is experiencing a strong downtrend, as seen by the 21 EMA, 34 EMA and 50 EMA all sloping downwards. When the downtrend pauses and price retraces back to these EMAs, it typically falters and reverses.
On the daily chart between...
Homebuilders are among the worst-performing groups this year as interest rates increase. Now there could be a bearish continuation pattern in the iShares U.S. Home Construction ETF .
ITB sank to a 52-week low around $57 one month ago, followed by a period of consolidation. The lows have inched higher during this time, creating a potential bearish flag.
Second,...
SPY follows ITB, not the other way around. Don't fall for the emotional trap in the markets right now. Q3-Q4 2022 could be very ugly. Shemitah year also. Good luck.
{repost from my blog which includes screenshots and charts}
Housing Market Intro and Summary
The Spring selling season looked like it started strong for new home sales. The data for April reveal a story evolving differently. Absolute inventories rose for both existing and new homes and yet sales declined. Housing starts also suffered a setback. Median prices of...
ITB is going through a classic Bollinger Band squeeze as it consolidates within an uptrend. A consolidation within an uptrend is a bullish continuation pattern and this favors a breakout to the upside, and new highs. Re-evaluate on close below January low.
Homebuilders were one of the strongest industries early in the pandemic as city dwellers headed to the suburbs. While the social trend has continued, bullishness has faded in the stocks.
This chart shows the broken trend line in the iShares US Home Construction Index. It apparently tried to form a bullish ascending triangle against resistance at $58.50 but never...
Housing stocks outperformed earlier this year thanks to low interest rates, an exodus from cities and tight inventories. They recently pulled back but could now be at support.
The iShares US Home Construction ETF is sitting around the same $52 zone where it bounced in September and late October. ITB is also near its 100-day simple moving average (SMA), a line it...
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Long 100 $XHB
Short 100 $ITB
Mean Reversion Time: 8 Trading Days
Of all the non-technology corners of the market, housing has been pretty much the strongest group this year. Most people know the story: lean inventories, low interest rates, demographic trends and a post-Covid surge in suburban living.
As often happens, this fundamental backdrop has played out technically. The iShares US Home Construction ETF barely pulled back...
