ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The grind played out for about 5 months – including a sell-off in June ahead of earnings. Now, KB Home (KBH) finally managed to break out to a new high for the year. KB Home (KBH) finally joined the growing list of home builders breaking to prices last seen last year and earlier. KBH is … 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
On March 25th, CNBC’s Fast Money discussed very active options trading in the iShares Dow Jones US Home Construction Index (ITB). Call option volume was triple put option volume. Of note, some trader purchased 5000 April 12 $35 weekly calls with ITB trading at $34.60 and just under its 200-day moving average (DMA). That trader … Read more
In most of my Housing Market Reviews this year, I chronicled the growing warning signs in the housing market and the on-going technical damage in the stocks of home builders. Until the last few months, I remained hopeful that a turn-around waited around the corner; I kept looking for the reassurances of the home builders … Read more
“KB Home shares jump on third quarter earnings” – such is the kind of quick trigger post earnings headline that consistently fails for home builders. KB Home (KBH) opened higher by 5.7% but was all downhill from there. At the close, KBH lost 3.1% on the day in a major reversal. This close was a … Read more