On Aug 27th in the chart below, suggested to “buy homebuilders” at (1), due to the bullish patterns that had taken place. (see post)
Homebuilders ETF (XHB) has reacted as the pattern would suggest, moving up over 11% in the following three weeks.
CNBC reported this morning that “Housing Starts Zoom 10.5% in surprise sign of Optimism.” (see post). Are things getting better for homebuilders? I don’t know! I do know that the pattern suggested to buy homebuilders on 8/27 and investors have been rewarded for having faith in the “Power of the Pattern.”
P.S. maybe with the CNBC headlines being positive this morning we should harvest!!! Hmmm…..Stay tuned.