Meritage Homes: A Markdown for Slower Growth Ahead

Meritage Homes (MTH) reported earnings two days before October 25th when iShares US Home Construction (ITB) first challenged its climactic January, 2018 high. At the time, MTH was in the middle of an impressive post-earnings rebound. At its intraday, post-earnings low, MTH perfectly tested support at its 50-day moving average (DMA). However, the moment of truth … Read more

Overbought Conditions a Next Step to Ease Topping Tension for Stocks – Above the 40 (December 27, 2019)

AT40 = 65.6% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 59.8% of stocks are trading above their respective 200DMAs (just under the high for 2019 of 60.2%)VIX = 13.4Short-term Trading Call: neutral Stock Market Commentary A week after my last Above the 40 post, the volatility index (VIX) is my … Read more

Housing Market Review (December, 2019) – A Precarious Divergence

Housing Market Intro/Summary When I wrote the Housing Market Review for November, the stocks of home builders were on the edge of conquering their moment of truth. The iShares US Home Construction (ITB) soon rolled over and confirmed a breakdown below support at its 50-day moving average (DMA). ITB is now in a precarious position where … Read more

Give Me Gold And Silver for Christmas

The stock market has floated higher on the good tidings of easy monetary policies around the globe. The Federal Reserve recently suggested that it will be on hold for the foreseeable future. These accommodative conditions are positive for precious metals, but both gold and silver topped out in early September. In hindsight, the run-up into … Read more