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One of the noteworthy developments in recent days has been the move in homebuilders.  The group was under selling pressure in recent days amid ongoing worries of higher interest rate.  Adding to concerns was report that housing starts declined 7 percent in February, a bigger-than-expected fall. Building permits, meanwhile, fell 7.7 percent last month.  The SPDR S&P Homebuilders ETF (XHB) fell 1.2 percent last week, bringing its YTD lost up to 6.1 percent.  Now the question is whether recent selloff 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.  Looking at the 2-year weekly chart of XHB, we can see that there’s currently a retest of support at the 50-week moving average after the early February overbought rebound ran out of steam near the 20-week moving average.  Last week’s bearish reversal…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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