Thursday, December 8, 2016
Full-time stock trader. Follow me here and on 12631
Joined Apr 1, 2010
8,862 Blog Posts

Update on the Homebuilders

Weekly sector ETF chart. Still working through a broadening megaphone pattern, though the second chart shows the continued RSI divergence. Too early to short without a trigger, but the upside momentum is not as powerful and explosive as you might expect with the bullish data reported.



Email this to someonePrint this page
If you enjoy the content at iBankCoin, please like our Facebook page


  1. charlie

    Since ’08 I’ve heard the term “housing market” thrown around a lot. I assume this refers specifically to residential real estate and also represents the idea that growth in the housing market is key to a real recovery of the American economy.

    My question then is, does IYR or XHB better measure the American housing market recovery? TIA

    • chessNwine

      Good question. I think XHB has less dividend yield plays and is higher beta, probably thus more sensitive to economy.

      • Berserker

        IYR is a real estate index linked product with about a 1/2% expense ratio vs XHB which is also an index linked product, but only tied to home builders, and with a slightly lower expense ratio. XHB has a much smaller “float”, so, in the short run, it’s hard to make sure that the NAV doesn’t go adrift, but over the lon haul it’s actually closer to its benchmark than the XHB (largely expense ratio related).