ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
This is a moment of truth for the stocks of homebuilders. The iShares Dow Jones Home Construction ETF (ITB) last week hit a 21-month high that exactly coincided with a climactic high in January, 2018. The subsequent selling this week seemed to unfold like clockwork. The selling was particularly notable given the S&P 500 (SPY) … Read more
Overall Assessment I am bullish on Meritage Homes (MTH). Both the fundamentals and the technicals on the company and stock look good even following the strong performance this year and following the last earnings report. I am very late on digging into Meritage’s latest story despite pointing out the stock’s strength several times over the … Read more
Overall Assessment I am neutral on KB Home (KBH). The company’s Q2 2019 earnings report offered just enough to erase the negativity going into earnings but offered nothing to ignite renewed upward momentum. The company talked a great game with a lot of bullish commentary but the actual numbers and metrics belie the headlines. KB … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
AT40 = 70.5% of stocks are trading above their respective 40-day moving averages (DMAs) – Day #1 of an overbought period AT200 = 66.0% of stocks are trading above their respective 200DMAs (a TEN MONTH HIGH) VIX = 11.1 Short-term Trading Call: bullish Commentary The S&P 500 (SPY) made another all-time high as it continued … Read more