The Homebuilders Select SPDR ETF (AMEX: XHB, Bullboard) has turned up in a meaningful way today after completing a correction of the March 7-24 upleg. My work indicates that the XHB should climb to retest the 24.45 high and sustain those highs the next time, on the way to a 26.00 target. Components LEN, MTH, NVR, and DHI look very compelling technically from the long side and should be the engines that propel the XHB higher.

Happy trading... 

Thanks for the info.

Luego, I like your XHB chart.

We must be blind or deaf. Look around. There’s no good news about homebuilders these days. Housing and Mortgages have been the center of current credit crisis and the stock market woes. We are talking about buying builders?

Yea, that’s right. Buy, buy, buy.....that’s what this chart says. 

Let me make some quick comments.

1. Long downtrend was broken at the end of January. (bullish)

2. Relative strength is good, and volume has been heavy on the upside. (bullish)

3. It is forming reverse head and shoulder pattern. When neckline (23ish) broken, the pattern will be completed. (bullish)

4. Since January low(16ish)-January recovery high(23ish) it formed a bullish flag, and it broke out last week followed by pullback to the breakout line. (not marked on the chart. bullish)

5. Or you can say it has been basing/in range bound/ in rectangle consolidation (18 to 23) for the last two months. This type of rectangle usually is resolved to the same direction where it was headed before consolidation (uptrend in this chart).

6. The best news is that XHB is on the verge of ‘Rule of 4 breakout’, which is one of my favorite chart set-ups. (23ish was touched and retreated three times already and when it is attacked 4^th time it would be broken to the upside)

7. The target price in this case is 28. Top range(23)-bottom(18)=5. Add this number to the breakout point to get the target price. (5+23=28)

8. I’m long a dozen of  homebuilder stocks now.

Let’s wait and see where it goes.

Good job, Luego.  Keep up your good work.

   Some good posting going on,,wish more of the top traders would post and show their trading skills.  That should be what this site is for, teaching beginner traders how to trade.  I like the contest part, don't get me wrong but I think to much greed goes on and keeps some from showing how they trade in the top spots.  Also think their is some in top spot that has more then one account and that makes it impossible for some to even try to make it to a top spot for chance at prize.

Well with that said,,Maybe the new singles forum willn't be so competitive and some will be willing to expose themselve's more.

I think it should be a rule that for top spot traders to post at least one time a week and tell a little about their trading style so some less experianced can begin to learn how to trade.

This is " Just My Opinoin" and my opinoin isn't worth much or so my wife say's sometimes. LOL just kidding

azsky33:

Luego, I like your XHB chart.

We must be blind or deaf. Look around. There’s any good news about homebuilders these days. Housing and Mortgages have been the center of current credit crisis and the stock market woes. We are talking about buying builders?

Yea, that’s right. Buy, buy, buy.....that’s what this chart says. 

Let me make some quick comments.

 

1. Long downtrend was broken at the end of January. (bullish)

2. Relative strength is good, and volume has been heavy on the upside. (bullish)

3. It is forming reverse head and shoulder pattern. When neckline (23ish) broken, the pattern will be completed. (bullish)

4. Since January low(16ish)-January recovery high(23ish) it formed a bullish flag, and it broke out last week followed by pullback to the breakout line. (not marked on the chart. bullish)

5. Or you can say it has been basing/in range bound/ in rectangle consolidation (18 to 23) for the last two months. This type of rectangle usually is resolved to the same direction where it was headed before consolidation (uptrend in this chart).

6. The best news is that XHB is on the verge of ‘Rule of 4 breakout’, which is one of my favorite chart set-ups. (23ish was touched and retreated three times already and when it is attacked 4^th time it would be broken to the upside)

7. The target price in this case is 28. Top range(23)-bottom(18)=5. Add this number to the breakout point to get the target price. (5+23=28)

8. I’m long a dozen of  homebuilder stocks now.

 

Let’s wait and see where it goes.

 

Good job, Luego.  Keep up your good work.

 

Well azsky thanks, you certainly know your TA. Sorry, I can't take all the credit for the posting, because I knew very little about the homebuilders until gomaxgo introduced me to them...:) Since then they are part of my watch list.

Hopefully XHB did well for you and so did the SP500 proxy, I guess.

Happy trading... 

azsky33:

Luego, I like your XHB chart.

We must be blind or deaf. Look around. There’s any good news about homebuilders these days. Housing and Mortgages have been the center of current credit crisis and the stock market woes. We are talking about buying builders?

Yea, that’s right. Buy, buy, buy.....that’s what this chart says. 

Let me make some quick comments.

 

1. Long downtrend was broken at the end of January. (bullish)

2. Relative strength is good, and volume has been heavy on the upside. (bullish)

3. It is forming reverse head and shoulder pattern. When neckline (23ish) broken, the pattern will be completed. (bullish)

4. Since January low(16ish)-January recovery high(23ish) it formed a bullish flag, and it broke out last week followed by pullback to the breakout line. (not marked on the chart. bullish)

5. Or you can say it has been basing/in range bound/ in rectangle consolidation (18 to 23) for the last two months. This type of rectangle usually is resolved to the same direction where it was headed before consolidation (uptrend in this chart).

6. The best news is that XHB is on the verge of ‘Rule of 4 breakout’, which is one of my favorite chart set-ups. (23ish was touched and retreated three times already and when it is attacked 4^th time it would be broken to the upside)

7. The target price in this case is 28. Top range(23)-bottom(18)=5. Add this number to the breakout point to get the target price. (5+23=28)

8. I’m long a dozen of  homebuilder stocks now.

 

Let’s wait and see where it goes.

 

Good job, Luego.  Keep up your good work.

 

 thanks

XHB is very interesting here. I had a quick look this morning on the chart.

Here is my thought:

2/01 high 23.60

2/27 high 23.22

3/25 high 23.38

4/01 high 23.44

Yesterday (4/2) it went as high as 24.26, retreated, and finished at 23.66.

It is just sitting at the top of the rectangle range, and made a shooting star (bearish).

However, it is not unusual to hover around the highs or drift back down a little bit to gather up some more energy prior to the final push through the resistance. In this case I take it a bullish sign.

I sold all my positions Tuesday and Wednesday, but I bought back this morning (4/3) in the weakness.  Let’s wait and see where it goes.

Caveat – Aware of false breakout. When a stock doesn’t do what it should do, it moves in the opposite direction fast and furiously.

Good luck!

I'm selling and moving back to the sidelines into the tomorrow's job report. The market is heading into the overbought territory. Good luck.