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One of the more noteworthy developments in recent days has been the move in homebuilders.  After a strong run of outperformance in 2017 that saw the S&P homebuilders index surged 75 percent, about four times as much as the stock market as a whole, homebuilder stocks have their worst seven-day run since February 2016.  The SPDR S&P Homebuilders ETF (XHB) fell 3.4 percent this week.  Now the question is whether recent weakness is a pause that refreshes or it’s a beginning of something worse?  Below is an update look at a trade in XHB.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red. 

Chart 1.1 – SPDR S&P Homebuilders ETF (weekly)

Our “U.S. Market Trading Map” painted XHB bars in red (sell) – see area ‘A’ in the chart.  This week’s downside follow-through confirmed last week’s bearish reversal signal…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

 

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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