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.