New Position: Short Homebuilders ETF (XHB)
I was recently stopped out of a a short position and wanted to increase the short exposure of my portfolio. You can view my entire portfolio at least up to my last update by clicking here – a new update will come soon.
I believe this summer will bring clear indication of continued struggles in housing with the expired tax credit. We saw this type of news a few days ago. As such, I think the homebuilders stocks will take a hit as more people embrace the idea that housing hasn’t bottomed.
You can see the XHB chart below; there is a clear downtrend, along with a small bounce in recent days. I expect the downtrend to continue, but if not, I’ll have a tight stop loss. Note that this is a trade, not an investment. I’m looking for short exposure to hedge my portfolio against, and I’m looking for a “quick buck.” This position is just under about 5% of my portfolio. I’ll set a stop loss target somewhere in the range of 17.00-17.25.
wonderful points, all are valid arguments, I had written more in my last comment, but for some reason it reset the comment feild, I left you a bookmark.
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I have a web site where I research penny stocks and stocks under five dollars. I have many years of experience with these type of stocks. If theirs anyone thats interested in these type of stocks you can check out my web site by just clicking my name. I would like to comment about the housing bubble this was an enormous bust. The one thing that I think is lost in all of this is that now home prices are more affordable than they have been in a long time. That does not mean that they cannot become even more affordable if home prices continue to drop. When and if the ecomony does start to really recover along with jobs and wages their should be a nice rebound in the housing market. As far as stocks in the housing business I would still feel safer buying an exchange traded fund like i shares home construction symbol { ITB } I think it is still way to early to pick winners or losers in the housing business.
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