Short Homebuilders ETF (XHB) Amid Recessionary Housing Signals
+9.80%current return
"I'm short a bunch of XHB. And I've had a kind of mixed success with it because it had a big breakout a couple of years ago. And then I shorted a bunch when it was up and covered."
— David Hay
Due to a deteriorating housing market with starts and permits down roughly 20% YoY and a widening gap between new and existing home prices, the fundamentals for homebuilders have worsened. XHB is cited as being near all-time highs despite these recessionary signals, suggesting traders could consider bearish positions (such as short selling or buying puts) on the homebuilders ETF.
Market ContextBearish
High ConvictionScore: 7.5
Stock Idea •Thoughtful Money with Adam Taggart • about 2 months ago
Homebuilders ETF XHB Shows Momentum Above Key Buy Point
-8.14%current return
"What about homebuilders? That's XHB. This one up over 3% today, showing a nice strong move going back above this previous buy point."
— Ed Carson
The Homebuilders ETF (XHB) is up over 3% and has moved back above a critical buy point. With the expectation of rate cuts and renewed momentum in the housing sector, this ETF offers a timely opportunity for investors interested in capitalizing on a sector rebound.
Market ContextBullish
High ConvictionScore: 8.0
Sector Trend •Stock Market Today With IBD • about 2 months ago