Trading Strategy – SPDR S&P Homebuilders ETF

 
One of the noteworthy developments in recent days has been the move in homebuilders. The group was under selling pressure Monday following report that Pending Home Sales rose just 0.4% MOM, missing expectations of 0.7% MOM, and prior months sales also revised notably lower, February down to 2.8 percent from 3.1percent. The SPDR S&P Homebuilders ETF (XHB) fell 2.01 percent, bringing its YTD lost to 12 percent, underperformed the S&P by a wide margin.  Now the question is whether Monday selloff is a beginning of an end or there’re more pains ahead?  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.  The first dominant feature on the chart is the rising trend line starting in early 2016.  The second dominant feature of the chart is the downward trend since early February 2018.  The April selloff pushed the ETF below the 50-week moving average and the 38.2% Fibonacci retracement of the 2016-2018 upswing, breaking an important support based on Fibonacci levels…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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