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New Position: Short Homebuilders ETF (XHB)

17 June 2010 2 Comments

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.

xhb

2 Comments »

  • Tree Trimming Houston said:

    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.