Divergent Fortunes and Trends – Housing Market Review (June, 2020)

Housing Market Intro and Summary I asked in my last Housing Market Review whether the housing downturn could already be coming to a swift end. The stocks of home builders delivered that message and more and more earnings reports from home builders are apparently delivering messages of a sharp recovery. A widening divergence between existing … Read more

Tesla: A Great Time for A Bollinger Band Squeeze

Tesla (TSLA) ended the week with a 5.1% gain as it coils in the middle of a growing Bollinger Band (BB) squeeze.

Technically Speaking “…the most technical trade in almost any instrument has got to be Telsa stock….Investors love the company…there are some long-term and substantial holders…who are not inclined to sell…” – Michael Khouw, CNBC, May 8, 2020 The technicals are the main way I have come to understand and appreciate Tesla (TSLA). Once again, the … Read more

Housing Downturn: Optimism Races Ahead of the Data – Housing Market Review (April, 2020)

The iShares Dow Jones US Home Construction Index (ITB) gained 4.2% and closed at a 2-month high.

Housing Market Intro and Summary Something surprising is happening in the middle of the current downturn in the housing market: buyers keep coming and home builders are staying resilient and resolute. A series of earnings reports from publicly traded home builders do not reflect the historic plunge in builder sentiment from April (see below). The … Read more

Animal Spirits in Housing Stocks Trampled by Virus Panic – Housing Market Review (February, 2020)

The iShares Dow Jones US Home Construction Index Fund ETF (ITB) dropped 13.4% in a week but managed to bounce off its 200DMA support.

Housing Market Intro/Summary The short-term outlook for the housing market is clouded by the current global turmoil generated by the coronavirus. The housing data discussed below were all collected before the virus came to the forefront of the minds of Americans. While demand for housing in the U.S. should remain strong (and certainly times like … 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

Housing Market Review (November, 2019) – Home Builders Still Knocking at the Moment of Truth

Housing Market Intro/Summary When I wrote the Housing Market Review for October, the stocks of home builders were failing their moment of truth. The iShares US Home Construction (ITB) soon rebounded, including a near picture-perfect test of support at its 50-day moving average (DMA). Last week, ITB actually printed a fresh 21-month high before pulling back. … Read more

Housing Market Review (August, 2019) – The Rally Is Real But the Data Still Lag

Housing Market Intro/Summary In the last Housing Market Review, I discussed my slow and reluctant acceptance of a stock market that was effectively front-running the seasonally strong period for the stocks of home builders (starting in October/November). I also showed the near consistent dichotomy between builders excelling at selling lower-priced homes to buyers trying to … Read more

Housing Market Review (July, 2019) – Key Divergences Emerging Under the Surface of the Seasonal Top

The iShares Dow Jones Home Construction ETF (ITB) continues to pivot around its slowly uptrending 50DMA.

Housing Market Intro/Summary In the last Housing Market Review, I pointed out how the stocks of home builders were still making a surprising push against the expected seasonal top in their shares. Yet, I still expected iShares US Home Construction ETF (ITB) to remain constrained to a pivot around its 50-day moving average (DMA). Soon … Read more

Housing Market Review (May, 2019) – A (Seasonal) Top Unfolds Amid Rising Confidence and Mixed Demand

Housing Market Intro/Summary In several posts on the housing market, I made the case for a top in the stocks of home builders and pointed out the parallel weaknesses in the housing data. Last week, the iShares US Home Construction ETF (ITB) appeared to confirm what looks like a triple top in the index. Not … Read more

Housing Market Review (April, 2019) – Housing Sentiment Leans Against Seasonality and Fresh Declines In Key Data

Housing Market Intro/Summary In the March Housing Market Review, I described how the iShares US Home Construction ETF (ITB) was breaking out despite an unimpressive collection of housing data (in the aggregate and trendwise). Last month, I updated my analysis of the seasonal trading strategy for home builders and pointed out the historical tendency for … Read more