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

A Bearish Divergence Now Behind, Overbought Awaits for Stocks – Above the 40 (December 20, 2019)

AT40 (T2108) finally broke out of an extended 2-month trading range and looks ready to challenge the overbought threshold.

AT40 = 65.7% 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 high for 2019 of 60.2%)VIX = 12.5Short-term Trading Call: neutral Stock Market Commentary The bearish divergence finally ended between a range-bound AT40 (T2108) and an S&P 500 (SPY) steadily … Read more

M/I Homes Earnings Q2 2019: Strong Growth In Affordable Housing Markets

M/I Homes (MHO) trades at a 19-month high thanks to a major post-earnings breakout.

Overall Assessment I am cautiously bullish on M/I Homes (MHO) which means I want to buy the stock on dips. The company’s Q2 2019 earnings report demonstrated strong growth amid record financial performance. The homebuilder is benefiting from the increasing popularity of lower-priced homes as first-time home buyers look for affordable housing amid a scramble … 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