{"id":47869,"date":"2019-04-11T21:02:44","date_gmt":"2019-04-12T04:02:44","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=47869"},"modified":"2019-04-11T21:33:48","modified_gmt":"2019-04-12T04:33:48","slug":"home-builder-index-achieves-a-major-milestone","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2019\/04\/11\/home-builder-index-achieves-a-major-milestone\/","title":{"rendered":"Home Builder Index Achieves A Major Milestone"},"content":{"rendered":"\n

The iShares US Home Construction ETF (ITB) has essentially reversed its entire breakdown that began in October.<\/p>\n\n\n\n

\"The
The iShares US Home Construction ETF (ITB) gained 1.0% and closed at a 7-month high. ITB finally reversed the October breakdown.<\/figcaption><\/figure><\/div>\n\n\n\n

ITB is now up 24.4% for the year and up 30.9% from the December low. These gains outpace the S&P 500’s (SPY) rebound of 15.2% for the year and 22.8% since the December low. This out-performance means that the seasonal trade that favors home builders over the S&P 500 from November to March\/April is alive and well (note I remain bearish<\/a> on the overall market).<\/p>\n\n\n\n

While I closed out my last trade on the seasonality of performance for home builders last week<\/a>, I am still holding other housing-related positions that I have discussed across various posts. I took profits on one of those positions yesterday: Redfin (RDFN). Recall that RDFN provided the early warning on the breakdown in the housing market<\/a>. The company also provided an early, albeit tentative, “all clear” signal<\/a> in February. Needless to say, I now watch this company closely. Still, I decided to take profits because I did not like the way the stock sold off from the latest peak.<\/p>\n\n\n\n

\"Redfin
Redfin (RDFN) earlier hit an 8-month high which represented a 62.8% year-to-date gain. <\/figcaption><\/figure><\/div>\n\n\n\n

I am still holding Zillow Group (ZG), a RDFN competitor, even after Jim Cramer panned the stock<\/a> earlier this week. The stock completely reversed a nice post-earnings gain from February, but I decided to ride on the large insider buying in November. The trader in me cringed at allowing those profits to evaporate…<\/p>\n\n\n\n

\"Zillow
Zillow Group (Z) is pivoting around its 50-day moving average (DMA) after a post-earnings surge failed definitively at 200DMA resistance.<\/figcaption><\/figure><\/div>\n\n\n\n

Source for charts: FreeStockCharts<\/strong><\/p>\n\n\n\n