SPDR S&P Homebuilders (XHB) is your Trade of the Week
The market indexes may be close to moving out of the volatile range we have been in lately. If stocks decide to head higher, institutions and money managers will more than likely be looking for an opportunity to get positioned in a lagging sector with good support. Many of the Trade Ideas scanners that look for trend reversals back to the upside were giving us names like Home Depot and many other Home Builders stocks. Some names have had earnings and some have not.
So this week the focus will be on this sector entirely and we will use an ETF so as to not worry about specific earnings or news on an individual stock as we are still in the middle of earnings season. The Trade of the Week in SPDR S&P Homebuilder ETF (XHB) will be conditional upon a trade in XHB at 39.97 this week. The suggested stop will be 20 cents below the “Swing Exit” line on the daily Trade Ideas chart. This puts the actual stop for this trade at 38.38. The suggested target for this idea will be 43.20. Risking 1.59 to make 3.23 is the game plan here.