Has the housing market recovered too quickly? Have potential mortgage applicants been scared out of the market? Has debt become too much to handle for too many Americans once again? These are the concerns raised time and time again by the financial media.
The Chimps hear them, but it’s a little hard to listen. We know from many decades of experience with the talking heads that they’ve got little better read on the market than the average homebuyer.
There is one source we always trust for this information, and that is the market itself. And this week, it’s telling us that the bull market is alive and well.
Last week, the Chimps recommended buy levels in Standard Pacific (SPF), Williams-Sonoma (WSM), and the S&P Homebuliders ETF (XHB). Of those three, WSM and XHB hit their buy targets, and have already reached their first profit targets. SPF continues with a revised buy level, while we look for higher levels in WSM and XHB as those trades continue.
We are also tracking Pulte Homes (PHM). As shown by our Moving Average Channels below, the symbol has shown weakness compared to our other housing plays. Thus, we continue to wait for a base of support to develop before entering the symbol.
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