I am of the opinion that home prices will drop at some point in the near future. Big earnings misses recently from KBH and LEN
I see the XHB at a potential inflection point if sellers present themselves here and solidify the January false breakout as a Bull Trap.
I see the XHB at a potential inflection point if sellers present themselves here and solidify the January false breakout as a Bull Trap.
Today I started a short position in Lumber Liquidators LL, Which checked back to its 200day MA in a bigger downtrend after a big downside earnings gap last July.
I also started a short position in Sherwin Williams, a derivative of housing so to speak. SHW has been an absolute monster but on a longer term time frame look how ridiculously overextended it is. Playing for the abnormally steep uptrend to snap off.
Inflated Property Values are an integral part of the China Bubble: China Weakness: A House of Cards
I also mentioned homebuilder weakness in an earlier post: Boom, Welcome to 2015
I also mentioned homebuilder weakness in an earlier post: Boom, Welcome to 2015