Homebuilders are back.
This blogger’s anticipation of an industry wide breakout soured after a couple of less than rosy outlooks from key companies sent investors into defensive mode. That big, fat red volume bar tells us more than a few paws got burnt trying to play it. But the setup is back and poised better than ever to bust north. What we liked then, we like now.
More discernible pivot points are in play, making our ability to define risk even easier.
Look at NVR and WCIC for the defined bases. Forget about KBH.
Use industry group ETF ITB, RYL and LEN as coal mine canaries.
Let ‘er rip.