Under the assumption that this rally has legs, the homebuilder sector could be one to watch on a pullback. Currently it’s fast approaching some serious resistance and in a rising bearish wedge. It could use a pullback and the $17 level provides a good area for a pullback. This would be close to a 9-10% pullback where it would be enough to scare traders into thinking it’s heading lower, but work off some of the froth that is baked into this chart.

A weekly closing below this level would give me cause for concern.

Strongest stocks in sector to buy on a pullback.

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3 Responses to “Where To Buy Homebuilders On a Pullback”

  1. abdul Says:

    On the dot Bro, my ES do so well in today’s trading and thanks to the rebound on the housing sector. The pullback came in during intraday session and after that the emini broke through the 13,000 barrier. Again thanks for the early feedback Bro. Major news like this really move the market.

  2. Chris Says:

    Hov was a big winner during the run, xhb chart looks solid. Ill keep in mind going forward. Also… Jeff u totally nailed that Qcor trade! The next day it crashed… selling was totally zen-like (pun intended) with no emotion just profits in mind. This is the kind of stuff readers like me take away from your blog. As a momentum trader, whats ur thoughts on nflx?


  3. jeff pierce Says:

    thx Chris – it did work out pretty sweet.

    re: NFLX difficult chart to analyze. http://screencast.com/t/BeDtPFnN7bDt I would stay away from it from the long side despite the recent run-up. It could move up from here, but I wouldn’t feel safe putting money into it after that big drop. If it went as high as $140 I would consider shorting it.

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