Daily Archives: January 27, 2018

Homebuilders ETF Poised to Make a New All-Time High

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The Homebuilders ETF (XHB) is poised to make a new all-time high as it faces its peak set just before the 2007/08 financial crisis struck, as shown on the monthly chart below.

There are two interesting things I notice on this chart. The volume moving average has been steadily declining since September of 2013 as the momentum indicator is nearing its record peak set in May of 2013…hinting of potential profit-taking at current overheated levels.

So, whether, or not, we are about to see a rollover anytime soon should be revealed in coming days/weeks. Keep an eye on volumes and momentum, for possible clues.  Furthermore, as the Fed considers 3 to 4 interest rate hikes this year, no doubt mortgage rates would rise, as well, negatively impacting this sector.

The S&P 500 Index (SPX) is shown in the background as the blue area. If the XHB rolls over, it may also bring the SPX with it, but, as I described in yesterday’s post, keep an eye on HYG, as well. (more…)

The Mean Streets of Atherton

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People seem to think that Palo Alto is a “rich” town, just because the likes of Mark Zuckerberg, Marissa Mayer, and Larry Page live here. Not so. It’s full of slobs like me. The really rich town is Atherton, a few miles from here, populated by an increasingly large proportion of Indian billionaires.

As you might guess, Atherton law enforcement doesn’t struggle with the same crimes that, say, Baltimore or Detroit police do. Here’s a recent sampling: (more…)