Trading Ideas That Paid – KBH

Homebuilders got a boost Thursday from a new government report showing that applications for building permits rose to their highest level since August 2008.  As such, the SPDR S&P Homebuilders ETF (XHB) added 3.2%. Builder KB Home (KBH) jumped 5.52%.  In fact, as the chart below indicated KBH could appreciate more than 20% in the coming days.  Below is an updated look at a trade in KBH.

The graphic below is from our “U.S. Market ETF Trading Map”, which show the near-term technical bias and trading ranges for KBH.  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.  The yellow bars identify period of neutral or sideways trading pattern.  Additionally, the light-blue shading represents the short-term trading range.  A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading).  Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.

Chart 1.1 – KB Home (daily)

As indicated in the above chart, our “U.S. Market ETF Trading Map” rates KBH as a Buy.  Just so that you know, initially profiled in our August 2, 2012 “Swing Trader BulletinKBH had gained more than 18% and remained well position.

Click here to read a detail technical analysis.

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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