The first chart below is of Lowe’s, an obvious housing-related play. Despite many price swings, the stock has essentially gone nowhere since late-January. It might be topping out here with a potential head and shoulders pattern. But it could just as easily be basing after a strong run over the past several quarters, before eventually continuing higher.
While that scenario plays out, I am looking for signs of rotation into two lesser known housing derivative plays, whose charts follow that of Lowe’s.
BSET deals with home furnishings, while CSTE is an Israeli firm dealing with quartz slabs used for kitchen countertops. To my eye, both charts are more appealing as long setups that LOW.
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Positano!