Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Developing Base for Home Builders

Developing Base for Home Builders
By Mike Paulenoff, www.MPTrader.com

I view the Homebuilding Sector ETF (AMEX: XHB) chart pattern from October as a developing base that is maturing ahead of a counter-trend period that should propel prices above the December recovery high near 13.80 towards a confrontation with the declining 200 DMA, now at 17.48. However, initial resistance along the way starts at 13.60 and extends to 14.60/70, at which point I will have to determine whether or not to hold our model portfolio long position or to exit, looking to re-enter into weakness. For now, as long as 12.00 contains any forthcoming weakness, I am "friendly" to the homebuilding sector.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!