Suggested to buy Homebuilders ETF (XHB) due to the bullish falling wedge and key channel support at the end of August, at price point (1) in the chart below. (see post here).
CLICK ON CHART TO ENLARGE
The Dow has rallied almost 1,500 points since the time it was suggested to buy homebuilders at (1). The economy looks a little better 4 months later! Most investors didn’t care too much for homebuilders at (1) and suspect this still isn’t a favored category, yet from a price standpoint, breaking above line (2) would be a HUGE PLUS for this ETF!
Game Plan…Want to be a buyer of XHB on an upside breakout!!!