- I'm watching this breakout of the falling wedge in US Home Construction ETF (ITB).
- It has rallied out of the wedge and is now facing resistance from its first pivot point. Watch for a break above the blue dashed line. This would be a good time to add some ITB to your portfolio for a short term trade.
- If the ETF breaks the pivot buy point watch for a move to test the 2011 highs and possibly new 52-week highs.
- A good move would be to find some of the better performing companies that make up the ETF and jump in one of those rather than buying the whole ETF. It's better to have one good company than a bunch of good ones and a bunch of bad ones, especially in a sector like home construction that has a lot of losers in it.
2 hours ago