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.

Homebuilders ETF Hurdles Resistance

Homebuilders ETF Hurdles Resistance
By Mike Paulenoff, www.MPTrader.com

During the past three sessions, the Homebuilding Sector ETF (AMEX: XHB) has broken and sustained above its 9, 20 and 50 DMA, and has hurdled its May-Dec resistance line. This is impressive action, and has inflicted meaningful damage to the heretofore dominant multi-month downtrend. On one hand, I should have established a new long position last Thurs or Fri, but on the other hand until I actually see the ability of the XHB to break key near-term resistance and sustain above those levels, I decided to take the prudent "show-me" approach. So far so good. With the above-mentioned analysis as a backdrop, my near-term work suggests that I will have an opportunity to enter new long positions closer to the 20.50 area in the upcoming sessions. I will wait for another day or so to see if I can buy into pullback weakness. If not, I will cross that bridge then. In either case, my work argues for continued strength in the XHB into the 25.20/70 target zone before the current initial upleg off of the low is complete.

  • 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!