Looking through the charts today. The strength in housing looks impressive. Toll Brothers (TOL) is one of few charts that is still in position to challenge the March highs. It is especially impressive given that the bonds turned lower on the jobs report. I guess the market likes the construction jobs in spite of the higher rates. Same story in Fluor (FLR).
I also see strength in the Asian ETFs (EWY, EWS), semiconductors (INTC, SMH) and some of the retailers (SMRT, ANN).
Oil stocks look alright but other commodities sectors are still struggling near lows.
I am taking a wait an see approach to the charts. I would expect this rally to lead to some nice shorts in a bit but if home builders can break new highs it might postpone the markets demise by months.
No comments:
Post a Comment