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.
Crayon closer to 2%. Big test right now for XHB! Keep stops!!!
Agree with your numbers for Gold! Getting more than a crayon distance away from the 30-year fibonacci number ($1,259) should cause gold to move up much more! Also see Silver post of last Friday, because Silver is testing a 30-year fib number as well.
We have been long silver over the past month, up 13%, (much bigger gains than gold)…if Silver can break Fib resistance…Hi Yo Silver and away it goes!
Hi, Chris: would you say a 1% break above the 200 EMA would constitute a continuation or does your “crayon” take you closer to 2%? On the gold front, I’d computed a breakout there 2% about its $1259 price which we got today after the Fed announcement. Seeing more weakness in the USD? And more strength in in the metals? Thanks.