ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 59.3% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 56.0% of stocks are trading above their respective 200DMAsVIX = 13.6Short-term Trading Call: neutral Stock Market Commentary Looking for buying opportunities paid off. A week that started with selling into trade troubles ended with the celebration of an exceptionally strong … Read more
During its earnings call, LGI Homes (LGIH) projected strong performance ahead. The company’s December home closings report delivered. LGI Homes closed 748 homes last month. The 49.6% year-over-year growth contributed to an 18.0% year-over-year overall growth rate in home closings for the first eleven months of 2019. The stock market responded positively by sending LGIH … Read more
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
The ETF Performance The 2019 seasonal trade for home builders was a dramatic one that departed from the typical script. The iShares US Home Construction (ITB) suffered greatly in the late 2018 sell-off. The housing market softened as one of the most notable features of the sell-off in the stock market. Several home builders made … Read more
Overall Assessment I want to be bullish on Century Communities (CCS). Century Communities sports a recession-level valuation and a strong top-line growth profile. The company’s business model is solidly planted in the entry-level and lower-priced homes that are prime drivers of the current housing market. However, a negative cash balance, negative earnings growth (over the … Read more