An update on XHB (homebuilders ETF) and some of my favorite trade ideas in the sector at this time.
For those wishing to skip ahead to the analysis of a particular stock or ETF, the following trade ideas are discussed in this order: XHB, AOS, LOW, LL, DHI, HD, LEN, LZB, MAS, LII, MHK, WHR, & TPX.
I've spent most of the morning reviewing the charts on all of the active trade ideas. While all the active longs still look fine, the short trades is a mixed bag right now: Some with nice embedded gains, some close to entry/breakeven, some close to their suggested stop level and some that have already exceeded [...]
HD is one of the active short trades in which I've made the decision to leave active even though it recently exceeded the previously posted suggested stop level by a modest amount (~3%). Like so many stocks at the top of what could likely prove to be a significant market top, prices are usually stretched [...]
While I updated the active trade ideas yesterday, removing all of the completed trades, I am spending some time on the trade setup category today. The first update is to the previous HD short setup. This trade actually triggered a short entry shortly after the setup was posted (on a breakdown below the ascending channel). [...]
I'm still waiting for an entry on the HD short setup and wanted to update the chart, as I believe this trade will have a high probability of playing out soon. Note that I have added a sub-trendline (green line) to just below the ascending channel. That sub-trendline captured the two prior brief spikes below [...]
I was very close to shorting HD near the highs yesterday morning and adding it to the site as an active trade. If you recall, I posted the short setup on Monday, to be triggered on a break below the ascending channel/primary uptrend line. Before the open Tuesday, HD announced better-than-expected earnings and triggered what [...]